The fate of Eddie Bauer’s brick-and-mortar fleet is uncertain as its operating company prepares to file for bankruptcy. There are more than 250 Eddie Bauer locations in North America.
In January Eddie Bauer IP owner Authentic said that Catalyst Brands — responsible for the operations of several brands in Authentic's stable — would continue to operate those retail and outlet stores. But Catalyst is readying a bankruptcy filing for the entity that runs Eddie Bauer’s locations, according to a source familiar with Authentic Brands Group. Authentic last month also shifted the Eddie Bauer e-commerce and wholesale licenses to another operator, Outdoor 5, which has taken over those operations in the U.S. and Canada.
There are parties interested in taking over the operation of a handful of Eddie Bauer stores in the U.S. and Canada, the source said. Most, if not all, of the brand's hundreds of stores in the region are set to shutter. Catalyst didn’t immediately respond to a request for comment for this story.
Authentic and Simon Property Group, via a 50/50 venture dubbed Sparc, acquired Eddie Bauer about five years ago. Sparc and its entities became part of Catalyst when Catalyst formed a year ago, incorporating J.C. Penney’s operations and leadership into the mix.
Less than three years ago, Eddie Bauer and Authentic unveiled a new logo and growth strategy for the century-plus-old outdoor retailer, including the expansion of wholesale and international sales. Before joining Sparc, Eddie Bauer, along with PacSun, was run by an operating setup established in 2018 by private equity firm Golden Gate Capital.
Authentic owns the intellectual property of several brands including Eddie Bauer and licenses those rights to others to run operations; the brand management firm also owns a stake in Catalyst. The U.S. operating company of Forever 21, whose brand is also owned by Authentic, filed for bankruptcy last year.
