The retailer has reportedly filed for Chapter 11 bankruptcy protection.
Wired PR News – Eddie Bauer has been added to the list of companies resorting to filing for Chapter 11 bankruptcy protection due to financial strain linked to the recession. As reported by the Associated Press (AP), the retailer made the filing on Wednesday. However, a bidder has reportedly made an agreement to maintain most of its stores and keep the majority of the retailer’s employees.
Eddie Bauer CEO Neil Fiske is quoted by the AP as releasing the statement regarding the company’s bankruptcy filing, “Eddie Bauer is a good company with a great brand and a bad balance sheet… This process will allow the business to emerge with far less debt, positioned for growth as the economy recovers and as our new products gain traction.”
As noted in the report, other retailers who have filed for Chapter 11 in recent months include Circuit City and Linens N’ Things.