Major clothing store with locations in Canada files for bankruptcy in U.S.

A major clothing store, with 15 stores in Ontario, has filed for bankruptcy in the U.S.

Eddie Bauer LLC, operator of Eddie Bauer stores in the United States and Canada, announced it filed for chapter 11 bankruptcy in New Jersey on Monday.

Reports indicated the filing was expected.

Liquidation sales are expected to begin at stores as the company seeks a buyer for all or part of its store operations.

Retail and outlet stores in the United States and Canada will remain open and continue serving customers as the company “begins its process of winding down certain stores,” according to a press release from Eddie Bauer.

The filing applies specifically to Eddie Bauer’s brick-and-mortar store operations under Catalyst Brands.

There are a few remaining Eddie Bauer stores in the Greater Toronto Area, including in the CF Shops at Don Mills, Vaughan Mills and Lime Ridge Mall in Hamilton. The CF Toronto Eaton Centre location closed in early 2023. The Oshawa Centre store closed last month.

Marc Rosen, CEO of Catalyst Brands, blamed economic conditions for the move, noting that Eddie Bauer was in “a challenged situation, with declining sales, supply chain challenges and other issues” last year. Catalyst Brands was formed last year through a merger between U.S. department store JCPenney and SPARC Group, a retail holding company that acquired the Eddie Bauer brand in May 2021.

“Over the past year, these challenges have been exacerbated by various headwinds, including increased costs of doing business due to inflation, ongoing tariff uncertainty, and other factors,” Rosen said in the press release. “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.”

Rosen added that if Eddie Bauer is unable to find a buyer, the store will wind down its store operations.

“This is not an easy decision, and we are grateful to the (Eddie Bauer’s) associates and customers for their loyalty and trust,” Rosen said.

He said they are working to “minimize the impact” on employees, vendors, customers and other stakeholders.

The company’s e-commerce and wholesale operations are not impacted as they are operated by a separate licensed operator, Outdoor 5, LLC, and will continue to operate as usual.

Authentic Brands Group continues to own the intellectual property associated with the Eddie Bauer brand and may license the brand to other operators.

The operations of other brands in the Catalyst Brands portfolio are not affected by the filing.

Eddie Bauer’s retail store locations outside of the United States and Canada are operated by other licensees, are not included in the chapter 11 filings, and will continue to operate.

The apparel chain has an over 100-year history. Seattle outdoorsman Eddie Bauer started a sporting goods shop in 1920 and it gradually grew into a major outdoor clothing brand.

Eddie Bauer entered the Canadian market in the late 1980.

Lead photo of the Eddie Bauer store in CF Toronto Eaton Centre in 2022: Rowanlovescars