Chapter 11 Bankruptcy for Eddie Bauer Holdings, Inc.

June 19, 2009 · Posted by Alex

From CNN.com:

“Eddie Bauer Holdings Inc. filed for Chapter 11 bankruptcy protection Wednesday, citing an inability to pay back debt.

Eddie Bauer (EBHI) emerged from Chapter 11 bankruptcy in 2005 after being spun off from former owner Spiegel Catalog, which itself sought bankruptcy protection in 2003.

Costs from the 2005 reorganization, combined with pressure from the current recession, left the company ‘with no choice but to use this process to reduce the debt load,/ said chief executive Neil Fiske in a prepared statement.’”

Eddie Bauer has 371 stores nationwide, including in Orange County (notably, in Costa Mesa’s South Coast Plaza), and plans to keep most of the stores open during the bankruptcy process.  If a new buyer takes over, however, it’s unclear what effect that would have on store closings.

For more bankruptcy information, click here

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