PENNSYLVANIA — A well-known national retailer with multiple stores across the state has declared bankruptcy and could go out of business entirely.
Seattle-based outdoor outdoor apparel, outwear and gear retailer Eddie Bauer filed for Chapter 11 protection in the United States Bankruptcy Court in New Jersey in Monday. While the legal proceedings proceedings proceed, stores will remain open but liquidation sales will occur as Eddie Bauer parent company Catalyst Brands attempts to find a buyer for its American and Canadian stores.
If no buyer emerges, the company will shutter those locations.
“After careful deliberation, (Eddie Bauer) has made the difficult decision to file under Chapter 11 to implement a court-supervised sale process and solicit a going concern transaction,” Catalyst CEO Marc Rosen said in a statement. “If (we are) unable to come to such an arrangement, we will commence an orderly wind down of store operations.”
Rosen blamed the bankruptcy filing on increased costs of doing business due to inflation, ongoing tariff uncertainty and other factors.
For the time being, most Eddie Bauer stores will will remain, although the company said in a release that it will begin “its process of winding down certain stores.” Eddie Bauer did not specify which stores will be targeted for closure.
The bankruptcy filing is not expected to impact the brand’s manufacturing, wholesale, or commerce operations. It also is not expected to impact the chain’s retail operations outside of the U.S. and Canada.