Eddie Bauer: New Jersey Chapter 11 Filing

Eddie Bauer LLC, the retail operator of approximately 175 Eddie Bauer stores in nearly every U.S. state and six Canadian provinces, filed for chapter 11 protection in the U.S. Bankruptcy Court for the District of New Jersey on February 9, 2026. The filing is the third chapter 11 in just over two decades for the 106-year-old outdoor apparel brand, following a 2003 case tied to parent company Spiegel Inc. and a 2009 filing that ended with a $286 million sale to Golden Gate Capital.

The 2026 case is a dual-track process: the debtors are conducting store closing sales at all locations while simultaneously pursuing a going-concern buyer for some or all of the retail operations. The filing came with unanimous support from the company's secured lenders, who hold approximately $1.74 billion in funded debt. Eddie Bauer's e-commerce and wholesale operations are not part of the bankruptcy — those rights were transferred to Outdoor 5, LLC, a longtime licensee of brand owner Authentic Brands Group, effective January 31, 2026 per the First Day Declaration.

Debtor(s)	Eddie Bauer LLC (5 jointly administered entities)
Court	U.S. Bankruptcy Court, District of New Jersey
Case Number	26-11422
Petition Date	February 9, 2026
Judge	Hon. Stacey L. Meisel
Claims Agent	Stretto

Dual-Track Restructuring

RSA and lender support. The debtors executed a Restructuring Support Agreement with 100% of their ABL, Term Loan, and Subordinated Loan lenders, who collectively hold approximately $1.74 billion in senior secured funded debt. The First Day Declaration describes a dual-track framework: completion of one or more going-concern sale transactions free and clear of liens, and an orderly wind-down of all brick-and-mortar operations not sold. The First Day Declaration also sets restructuring milestones that contemplated plan confirmation within 70 days of the petition date and required filing a chapter 11 plan within 14 days. After filing, the court's scheduling order set a disclosure statement objection deadline of March 9, 2026 at 4:00 p.m. Eastern, a conditional disclosure statement hearing on March 16, 2026, and a plan confirmation hearing on April 16, 2026.

Cash collateral. The debtors sought authority to use cash collateral of the prepetition secured parties rather than obtaining DIP financing. The Cash Collateral Motion states the debtors entered chapter 11 with approximately $20 million of cash on hand and expected average weekly disbursements of approximately $1.6 million over the first thirteen weeks. The related Cash Management Motion states the debtors operated 32 bank accounts (21 U.S. and 11 Canadian accounts), with approximately $20.0 million in debtor-held cash as of the petition date. The Cash Collateral Motion proposes adequate protection including replacement liens, superpriority claims, budget compliance covenants, and cash payments to the ABL administrative agent. Identified termination-event triggers include failure to satisfy milestones, budget noncompliance beyond permitted variances, and unauthorized cash collateral use under the interim order framework reflected in the interim cash collateral order.

Prepetition sale process. The debtors retained SOLIC Capital Advisors as investment banker on November 24, 2025, to conduct a formal sale process. Reid Snellenbarger, Co-Head and Senior Managing Director at SOLIC, stated in a Snellenbarger Declaration that the firm contacted 126 potential acquirers — 58 strategic and 68 financial — and 34 signed nondisclosure agreements. The process produced two non-binding indications of interest submitted on or after the January 30, 2026 deadline, and the debtors used those bids as the baseline for the postpetition process.

Postpetition bidding procedures. The debtors filed a Bidding Procedures Motion to continue the sale process postpetition, covering approximately 220 stores. No stalking horse bidder was designated as of filing. The court's bidding procedures order established a final bid deadline of March 3, 2026 at 5:00 p.m. Eastern, a potential auction on March 6, 2026 at 10:00 a.m. Eastern, a sale objection deadline of March 10, 2026 at 5:00 p.m. Eastern, and a sale hearing on March 12, 2026.

Store closing sales. The debtors retained Hilco Merchant Resources and SB360 Capital Partners (with Gordon Brothers) to conduct store closing sales at 175 locations. The Store Closing Motion states that sales began prepetition between January 26 and February 7 and are expected to continue for approximately 13 more weeks, with a termination deadline of April 30, 2026. Estimated aggregate net proceeds from store closings are approximately $21.3 million. The liquidation agent's base fee is 2.0% of gross proceeds, with incentive tiers of up to 2.5% at higher recovery thresholds. All sales of merchandise and FF&E are proposed to be free and clear of liens under section 363(f), while cure and assignment disputes for any assumed contracts flow through the sale schedule in the bidding procedures order.

Unsecured creditor recovery. Under the RSA, general unsecured creditors would receive the greater of 10% of net sale proceeds above a threshold recovery for ABL lenders, or $250,000 — contingent on the unsecured creditor class voting to accept the plan. Holders of ABL, Term Loan, and Subordinated Term Loan claims agreed to forego additional recovery to facilitate the process.

First-day relief. Alongside the sale and cash collateral motions, the debtors filed motions to jointly administer the five cases, continue using the existing cash management system, pay wages and benefits, maintain insurance coverage, honor customer programs, pay critical vendors, and authorize Canadian ancillary proceedings. The court entered first-day and second-day relief through, among others, the joint administration order, interim wages order, interim customer programs order, interim cash management order, interim cash collateral order, and foreign representative order.

Sale and plan sequencing after entry of initial orders. The scheduling order and bidding procedures order together created a compressed sequence that linked sale execution and confirmation timing. The debtors' sale track required bid submission and auction events in early March, followed by a March 12 sale hearing window, while the plan track moved in parallel through March disclosure and sale objection deadlines, a March 16 conditional disclosure statement hearing, and an April 16 confirmation hearing. Separate court hearing notices for the sale hearing, conditional disclosure statement hearing, and plan confirmation hearing reinforced that the case was designed to run sale and plan processes in close succession instead of in separate multi-month phases.

Claims administration and notice infrastructure. On the administrative side, the debtors sought to retain Stretto as claims and noticing agent effective as of the petition date through a dedicated claims agent retention motion, and the court's interim sale and scheduling orders repeatedly directed parties to the case website hosted by Stretto for service, deadlines, and transaction notices. That setup mattered in a fast case because bid notices, cure and assignment notices, objection deadlines, and hearing logistics all depended on tight notice windows and immediate access to updated pleadings.

Milestone	Date
Disclosure Statement and Plan filing deadline	February 23, 2026
Bid deadline	March 3, 2026
Auction (if needed)	March 6, 2026
Disclosure statement objection deadline	March 9, 2026 at 4:00 p.m. ET
Sale objection deadline	March 10, 2026
Sale hearing	March 12, 2026
Conditional disclosure statement hearing	March 16, 2026
Plan confirmation hearing	April 16, 2026
Store closing sales termination deadline	April 30, 2026

Company History and Brand Heritage

Eddie Bauer founded a Seattle shop in 1920 with $25 of personal funds and a $500 loan. The shop was renamed "Eddie Bauer's Sporting Goods" in 1924. In 1936, Bauer patented the first goose down insulated jacket in the United States — the "Skyliner," priced at $34.50. During World War II, the company manufactured 25,000 flight suits and nearly 250,000 sleeping bags for the U.S. Army Air Corps. Eddie Bauer later outfitted the first American ascent of Mount Everest in 1963.

Retail expansion and corporate ownership. General Mills acquired Eddie Bauer in 1971 for approximately $10 million. Spiegel Inc. purchased the brand in 1988 for $260 million. Under Spiegel, the store count grew from 57 to 500 U.S. locations by 1997, and revenue reached $1 billion for the first time in 1993, growing to $1.79 billion by 1999. The brand operated nearly 600 stores in 2001.

Decline from peak. By the 2026 filing, the store count had fallen from approximately 600 to roughly 175 operating locations, with an additional 49 stores closed through lease non-renewals before the petition date. Store count figures vary across reporting — AP and Newsweek cited roughly 180, BNN Bloomberg reported 220 total including stores offered for sale, and Commercial Observer reported up to 200. The First Day Declaration identifies ~175 operating stores plus the 49 recently closed.

Three Bankruptcies in Two Decades

2003: Spiegel Group filing. Eddie Bauer's first chapter 11 came in March 2003, when parent company Spiegel Inc. filed for bankruptcy. Eddie Bauer reorganized and emerged as Eddie Bauer Holdings Inc. in 2005.

2009: Standalone filing and sale to Golden Gate Capital. Eddie Bauer filed for chapter 11 on June 17, 2009, in Delaware. CCMP Capital submitted a stalking horse bid of $202 million, and Golden Gate Capital won the auction with an all-cash bid of $286 million. At that time, the company reported total assets of $476.1 million, total debt of $426.7 million, and retained the majority of its 370 stores with 10,000 employees. Eddie Bauer shareholders had rejected a prior acquisition proposal from Sun Capital Partners and Golden Gate Capital valued at around $280 million in 2007.

2026: Catalyst Brands filing. The current filing involves Eddie Bauer LLC as a retail operating licensee — not the brand owner. The entity carries approximately $1.74 billion in secured funded debt despite operating only brick-and-mortar stores under license. The First Day Declaration states the debtors lost more than $172 million over the last three fiscal years (2023–2025).

Path to Financial Distress

The First Day Declaration identifies several factors that drove the 2026 filing.

Declining demand. Customer demand declined below historical trendlines beginning in 2023, attributed to shifting consumer preferences. Neil Saunders, managing director at GlobalData Retail, characterized the brand as "somewhat old-fashioned and a bit irrelevant" among younger consumers, citing competition from brands like Fjallraven and Arc'teryx. Saunders also stated that quality deterioration is particularly problematic for a brand that positions itself as an outdoor performance brand.

Rising costs and tariffs. Catalyst Brands CEO Marc Rosen cited increased costs tied to inflation and tariff uncertainty as contributing to the company's decline. The First Day Declaration specifically references the suspension of the "de minimis" tariff exemption as eroding margins.

Accelerating losses. The First Day Declaration reports positive EBITDA of $21 million in the last eight months of 2021, followed by negative earnings of approximately $2 million in 2022, $10 million in 2023, $82 million in 2024, and $80 million in 2025. By the petition date, management characterized the business as unable to absorb continued operating losses in the brick-and-mortar channel while also funding required brand-license economics.

Unsustainable licensing obligations. The First Day Declaration states the debtors determined in Q4 2025 that they could no longer support approximately $220 million in future licensing fees payable to Authentic Brands Group over six years.

E-commerce and wholesale unprofitability. The First Day Declaration states the debtors' e-commerce operations were only marginally profitable, and wholesale became unprofitable. Both channels were terminated and transferred to Outdoor 5, LLC effective January 31, 2026.

SPARC funding exhaustion. The First Day Declaration states SPARC had provided approximately $215 million in financial support since the 2021 acquisition and indicated it would cease funding future losses, leaving the debtors with an approximately $215 million intercompany payable to SPARC at the petition date.

Runway and execution pressure. The First Day Declaration and Snellenbarger Declaration together show that the debtors ran a broad prepetition process but did not secure a signed going-concern transaction before filing, even after outreach to 126 potential parties and execution of 34 NDAs. That record supports why the debtors pursued a court-supervised sale track with tight deadlines rather than a longer operational turnaround.

Ownership and Corporate Structure

Authentic Brands Group and SPARC. In June 2021, ABG acquired the Eddie Bauer intellectual property and SPARC Group acquired the operating business from Golden Gate Capital. The transaction closed with Eddie Bauer's headquarters remaining in the Seattle area. Under this arrangement, the debtors operated as a licensee of the Eddie Bauer brand for North American brick-and-mortar retail. SPARC provided a wide range of operational and financial support including payroll, insurance, IT, marketing, and treasury management, for which the debtors paid a monthly management fee.

Catalyst Brands formation. In January 2025, Penney Holdings LLC (parent of JCPenney) acquired 100% of SPARC's equity through an all-equity merger. The combined entity operates under the trade name Catalyst Brands and includes Aeropostale, Brooks Brothers, Lucky Brand, and Nautica alongside JCPenney. Catalyst Brands launched with more than $9 billion in revenue, 1,800 store locations, and 60,000 employees. Marc Rosen serves as CEO. The primary shareholders are Simon Property Group, Brookfield Corporation, ABG, and Shein.

Outdoor 5 transition. In January 2026, ABG expanded its partnership with Outdoor 5, LLC (owned by David Oved) to assume responsibility for Eddie Bauer e-commerce, wholesale operations, and design/product development in the U.S. and Canada. The debtors terminated their e-commerce and wholesale rights effective January 31, 2026, retaining only the brick-and-mortar license.

Impact on other Catalyst brands. The Eddie Bauer chapter 11 filing does not affect other Catalyst Brands portfolio companies — Aeropostale, Brooks Brothers, Lucky Brand, Nautica, and JCPenney. International Eddie Bauer stores operated by other licensees are also unaffected.

Capital Structure and Debt

As of the petition date, the debtors had approximately $1.74 billion in aggregate outstanding principal and accrued interest across three prepetition funded debt facilities, with substantially all assets pledged as collateral.

Facility	Agent	Rate	Amount
ABL Facility (Loans)	Wells Fargo Bank, N.A.	SOFR + 2.50%	$728.5M
ABL Facility (Letters of Credit)	—	Variable	$196.8M
Term Loan	WhiteHawk Capital Partners LP	SOFR + 6.75%	$600.0M
Subordinated Loan	Copper Retail JV LLC	15.0% (PIK)	$216.3M
Total			~$1.74B

ABL Facility. The revolving facility provides up to $1.75 billion, with first-priority liens on substantially all assets. The Canadian sub-limit is $6.4 million in guarantees.

Intercompany payable. Approximately $215 million is owed to SPARC as of the petition date, representing the accumulated shortfall between SPARC's covered expenses and funds transferred from the debtors.

Lien package and collateral posture. The First Day Declaration and Cash Collateral Motion describe the funded debt as secured by substantially all assets, including inventory, receivables, cash proceeds, intellectual property rights available at the operating-entity level, and related collateral proceeds. In practical terms, that collateral stack explains why the debtors proceeded on a consensual cash-collateral path rather than a priming DIP contest in the opening days of the case.

Unsecured creditor waterfall mechanics. The First Day Declaration describes unsecured creditor treatment as the greater of 10% of net sale proceeds above a defined ABL recovery threshold or $250,000, contingent on class acceptance. That structure ties unsecured recovery directly to sale outcomes and lender recoveries, which makes bid competitiveness and sale execution timing central to creditor economics.

News reports characterized total debt variously — Fox Business reported $1.7 billion, while Commercial Observer reported approximately $1 billion. The First Day Declaration puts the precise figure at $1,741,570,703 across the three secured facilities. Business Insider reported the bankruptcy filing listed more than 100,000 creditors.

Employees, Customers, and Stakeholder Impact

Workforce. The debtors employed approximately 2,200 people as of the petition date — roughly 500 full-time, 1,400 part-time, and up to 300 seasonal temporary workers. Approximately 70 served in corporate roles, with the remainder in retail positions. The Wages Motion states that prepetition wages and salaries owed totaled approximately $5.6 million and that annual compensation levels were approximately $61 million for U.S. employees and $6.2 million for Canadian employees. The debtors also reported approximately 60 independent contractors and approximately $330,000 of prepetition contractor obligations. The debtors sought authority to continue paying wages and benefits, including medical coverage administered by SPARC through Aetna.

Customer programs. The debtors filed a motion to maintain the Adventure Rewards loyalty program, co-branded credit card, gift card program, refund and exchange policies, and charitable programs through the chapter 11 case. The Customer Programs Motion states the loyalty program had approximately 10 million members, with tiered earning rates from three to five points per dollar and merchandise-credit conversion of $5 per 500 points, subject to quarterly certificate limits. The same motion states approximately $21 million of gift cards had been issued over the prior three years and approximately $5.2 million of gift cards were typically redeemed annually. All store closing sales are final — no returns accepted unless directed by the merchant.

Canadian proceedings. Eddie Bauer of Canada Corporation and 13051269 Canada Inc. operate 24 retail locations across six Canadian provinces, as stated in the foreign representative motion. The debtors sought authorization for Eddie Bauer LLC to act as foreign representative in ancillary proceedings under the Companies' Creditors Arrangement Act (CCAA) in Ontario. CBC reported 60%+ markdowns in Canadian stores in the week before filing. Rosen told BNN Bloomberg: "While the leadership team at Catalyst was able to make significant strides in the brand...those changes could not be implemented fast enough."

Critical vendors and trade claims. The debtors sought authority to pay prepetition claims of critical vendors (up to $2.5 million), foreign vendors ($1 million), 503(b)(9) claimants ($3 million), and lien claimants ($7 million interim, $12 million final). Total prepetition trade payables are approximately $35 million.

Key professionals. The debtors proposed Kirkland & Ellis LLP as lead counsel, Cole Schotz P.C. (Michael D. Sirota) as local counsel, and Osler, Hoskin & Harcourt LLP as Canadian counsel. Berkeley Research Group serves as financial advisor and provider of Co-Chief Restructuring Officers Stephen Coulombe and a second managing director, both appointed January 31, 2026. BRG professionals began advising the company as financial advisors in October 2025. SOLIC Capital Advisors serves as investment banker, retained since November 24, 2025. RCS Real Estate Advisors serves as real estate advisor. Disinterested directors Jeffrey Stein and Anthony Horton were appointed October 3, 2025.

Frequently Asked Questions

Why did Eddie Bauer file for bankruptcy in 2026?

The First Day Declaration identified declining customer demand since 2023, rising costs from inflation, tariff uncertainty including the suspension of the de minimis exemption, approximately $220 million in unsustainable licensing fees to Authentic Brands Group, and more than $172 million in cumulative losses over the last three fiscal years (2023–2025). SPARC, which had provided approximately $215 million in financial support since the 2021 acquisition, signaled it would cease funding losses.

Is this the first time Eddie Bauer has filed for bankruptcy?

No. The 2026 filing is the third chapter 11 in just over two decades. The brand first entered chapter 11 in March 2003 as part of the Spiegel Group bankruptcy and reorganized as Eddie Bauer Holdings Inc. in 2005. A second standalone filing in June 2009 resulted in a $286 million sale to Golden Gate Capital.

Are Eddie Bauer stores closing?

Store closing sales began prepetition at 175 locations between January 26 and February 7, 2026, and are expected to continue for approximately 13 more weeks with a termination deadline of April 30, 2026. The debtors are simultaneously pursuing a going-concern buyer for some or all of the stores through a sale process with a bid deadline of March 3, 2026.

Can I still use Eddie Bauer gift cards and loyalty rewards?

The debtors filed a motion to maintain the Adventure Rewards loyalty program, co-branded credit card, and gift card programs during the chapter 11 case. All store closing sales are final — no returns accepted unless directed by the merchant.

Does the bankruptcy affect Eddie Bauer's website or online shopping?

Eddie Bauer e-commerce and wholesale operations are not part of the chapter 11 filing. Those rights were transferred to Outdoor 5, LLC effective January 31, 2026. International stores operated by other licensees are also unaffected.

Who owns the Eddie Bauer brand?

Authentic Brands Group owns the Eddie Bauer intellectual property. The debtors, under the Catalyst Brands umbrella, operated as a licensee for North American brick-and-mortar retail. Outdoor 5, LLC holds the e-commerce and wholesale license. ABG retains the right to license the brand to other operators.

Does the Eddie Bauer filing affect JCPenney or other Catalyst Brands?

No. The chapter 11 filing involves only the five Eddie Bauer debtor entities. Other Catalyst Brands portfolio companies — Aeropostale, Brooks Brothers, Lucky Brand, Nautica, and JCPenney — are not affected.

How much debt does Eddie Bauer carry?

The debtors reported approximately $1.74 billion in aggregate outstanding funded debt across three secured facilities: a $925 million ABL facility (loans plus letters of credit), a $600 million term loan, and a $216 million subordinated loan. An additional approximately $215 million is owed to SPARC as an intercompany payable.

What happens to Eddie Bauer stores in Canada?

Eddie Bauer operates 24 stores across six Canadian provinces. The debtors sought authorization for ancillary proceedings under the Companies' Creditors Arrangement Act (CCAA) in Ontario. Canadian stores are included in the wind-down process.

Who is the claims agent for Eddie Bauer?

Stretto serves as the claims and noticing agent. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest.

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