The operator of Eddie Bauer stores in the United States and Canada has filed for Chapter 11 bankruptcy protection. This move allows the company to continue operations while it restructures its debts. The filing comes amid declining sales and a challenging retail environment.
Eddie Bauer LLC, the retail operator, filed for Chapter 11 bankruptcy on Monday, February 9, 2026.
Background of the Filing
Eddie Bauer LLC, which manages the brand's retail stores across the U.S. and Canada, announced its Chapter 11 bankruptcy filing on Monday, February 9, 2026. This is the third time the company, founded over a century ago, has sought Chapter 11 protection. Previous filings occurred in 2003 and again six years later, influenced by the 2008 financial crisis.
The company intends to keep most of its retail and outlet stores in the U.S. and Canada open during this restructuring period, though some locations may be wound down. The bankruptcy filing is not expected to affect the brand's manufacturing, wholesale, e-commerce operations, or retail stores outside of the U.S. and Canada.
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"While the leadership team at Catalyst was able to make significant strides in the brand, including rapid improvements in product development and marketing, those changes could not be implemented fast enough to fully address the challenges created over several years." - Marc Rosen, CEO of Catalyst Brands, the owner of the Eddie Bauer brand.
Factors Contributing to Bankruptcy
Several interconnected issues are cited as reasons for the bankruptcy filing.
Declining Sales: The company has experienced a persistent decrease in sales, a trend noted by multiple sources.
Supply Chain Challenges: Disruptions and difficulties within the supply chain have added to operational pressures.
Economic Headwinds: Broader economic factors, including inflation and tariff uncertainty, are also listed as contributing causes.
Brand Perception: One report suggests that younger consumers may perceive the brand as "old-fashioned and a bit irrelevant," impacting its appeal.
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Marc Rosen, CEO of Catalyst Brands, which holds the license to operate Eddie Bauer stores in the U.S. and Canada, stated that while his team made improvements in product development and marketing, these efforts were insufficient to overcome long-standing issues. He also noted that the restructuring aims to optimize value for stakeholders while ensuring Catalyst Brands remains profitable.
Restructuring and Operations
Eddie Bauer LLC has entered into a restructuring agreement with its secured lenders. The filing was made in the U.S. Bankruptcy Court for the District of New Jersey. The brand is owned by Authentic Brands Group.
The bankruptcy filing is a strategic move to restructure debts and optimize the retail business, with most stores remaining operational during the process.
Most Eddie Bauer retail and outlet stores in the U.S. and Canada are expected to continue operating, although some locations may be closed as part of the company's wind-down strategy.
Broader Retail Context
The Eddie Bauer bankruptcy occurs within a larger trend of retailers seeking bankruptcy protection or scaling back operations. This pattern is attributed to a challenging market that has seen other companies face similar financial difficulties.
Sources
CNN Business: Operator of Eddie Bauer stores in the US and Canada files for bankruptcy. Published 1 day ago. https://www.cnn.com/2026/02/09/business/eddie-bauer-bankruptcy
Associated Press (AP News): Retail operator of outdoor sportswear pioneer Eddie Bauer files for bankruptcy. Published 1 day ago. https://apnews.com/article/eddie-bauer-bankruptcy-retail-1f4168dca0060353b3766f0924d9c7da
CBS News: Eddie Bauer's retail operator declares bankruptcy. Published 1 day ago. https://www.cbsnews.com/news/eddie-bauer-bankrupt-outdoor-apparel/
USA Today: Eddie Bauer bankruptcy: Retail operator files for Chapter 11. Published 20 hours ago. https://www.usatoday.com/story/money/2026/02/09/eddie-bauer-files-bankruptcy/88594268007/
Fortune: Eddie Bauer's retail operator declares bankruptcy as younger shoppers view the brand as 'old-fashioned and a bit irrelevant'. Published 19 hours ago. https://fortune.com/2026/02/09/eddie-bauer-chapter-11-bankruptcy-liquidation-retail-shopping/
Fox Business: Eddie Bauer retail operator files for bankruptcy, begins liquidation sales. Published 18 hours ago. https://www.foxbusiness.com/retail/eddie-bauer-retail-operator-files-bankruptcy-begins-liquidation-sales
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