NEW YORK — Struggling retailer Eddie Bauer, which began in 1920 as a Seattle fishing shop, later outfitted the first American to climb Mount Everest and made thousands of newfangled down jackets and sleeping bags for troops during World War II, filed for Chapter 11 bankruptcy protection Wednesday.
Still known for outdoorsy clothing but serving a more domestic clientele of students and other mall patrons, the company said Wednesday that a bidder has agreed to keep the majority of its 371 stores open, honor its gift cards and hold on to most employees.
The company said CCMP Capital Advisors has bid $202 million in cash for its assets. Other buyers also may make bids while the company is under court protection.
Bankruptcy rumors had been swirling as the Bellevue, Wash.-based retailer struggled with slumping sales amid the recession. It reported a loss for the first quarter of $44.5 million.
It had $476.1 million in assets and $426.7 million in debt at the time of its filing Wednesday with the U.S. Bankruptcy Court of the District of Delaware.
Since becoming chief executive in 2007, Neil Fiske tried to turn the company around, cutting jobs and lowering expenses. But the company continued to falter as the economy soured.
“Now you have too many stores chasing shoppers who are more cash- and credit-constrained than any time post-World War II,” said retail consultant Burt Flickinger III, managing director of Strategic Resource Group.
“Eddie Bauer is a good company with a great brand and a bad balance sheet,” Fiske said.
