Eddie Bauer LLC and four affiliates are operating under a confirmed and effective Third Amended Joint Plan of Reorganization that provides for going-concern store sales, store-closing sales, and a structured wind-down of the remaining estates, after filing for Chapter 11 on February 9, 2026 in the U.S. Bankruptcy Court for the District of New Jersey (Case No. 26-11422, Judge Stacey L. Meisel) (Voluntary PetitionDkt. 1).
The filing capped a sustained deterioration rather than a sudden shock. As the exclusive U.S. and Canadian brick-and-mortar licensee of the Eddie Bauer brand and a Catalyst Brands portfolio company backed by Simon Property Group, Brookfield, and Authentic Brands Group, the debtors accumulated roughly $174 million of operating losses across 2022–2025 — including approximately $80 million of negative EBITDA in 2025 alone — as consumer demand softened, costs climbed, and the suspension of the de minimis tariff exemption compressed margins. The immediate trigger was the SPARC/Catalyst parent's signaled withdrawal of further support after roughly $215 million of cumulative subsidies, compounded by onerous licensing fees of about $220 million owed to Authentic Brands Group over six years. Ten days before petition, on January 31, 2026, the debtors terminated that license, surrendering e-commerce and wholesale rights to Outdoor 5 LLC while retaining store rights to save the $220 million in future fees, as laid out in the first-day declaration of Co-CRO Stephen CoulombeDkt. 35.
The restructuring ran on cash collateral rather than new money. Against approximately $1.74 billion of prepetition funded debt — a $728.5 million Wells Fargo ABL (plus $196.8 million of letters of credit), a $600 million WhiteHawk Capital term loan, and a $216.3 million Copper Retail JV subordinated facility — the debtors secured a granting adequate protection through replacement liens, superpriority administrative claims, and weekly paydowns governed by a 13-week budget. A Restructuring Support Agreement backed by all of the ABL, term loan, and subordinated lenders anchored a dual-track process in which SOLIC Capital Advisors canvassed 126 prospects and drew two indications of interest. The and its formalize a liquidating architecture: Plan Administrator Steve Balasiano oversees estate wind-down, claims reconciliation, and pursuit of retained causes of action, while a General Unsecured Claims Trust administered by Olympus Guardians LLC distributes a recovery pool — the greater of $250,000 or 10% of net proceeds above the secured threshold — to holders of Class 6 general unsecured claims.
With the plan confirmed on April 16, 2026 and the effective date subsequently reached, the case has shifted to plan administration and professional-fee reconciliation. The lone scheduled matter is a July 21, 2026 hearing on the Official Committee of Unsecured Creditors' final fee applications — collectively requesting about $1.75 million across Pachulski Stang Ziehl & Jones, Province LLC, and Brinkman Law Group — under the notice of hearing on final fee applicationsDkt. 564, with objections due July 13.
