Another one joins the ranks of once popular, now bankrupt brands. I wonder who is going to be next.
Full article at: http://www.thestar.com/business/article/652266
American specialty clothing retailer Eddie Bauer Holdings Inc. is up for sale again after filing for bankruptcy court protection from creditors, a move that could affect some of its estimated 36 stores in Canada.
Citing a crushing debt load and prolonged recession, the Bellevue, Wash.-based retailer said it has filed for Chapter 11 bankruptcy protection in the U.S. as vendors became increasingly nervous about its ability to pay its bills.
The company's Canadian operations have also filed for bankruptcy protection under the Companies Creditors and Arrangements Act.
The retailer, which operates 371 stores, mainly in the U.S., said that after considering all of its alternatives it is hoping to be sold.
It has an offer already from a New York-based private equity firm, CCMP Capital Advisors LLC, for $202 million U.S. The deal is subject to a court supervised auction process during which other bidders could emerge.
CCMP has committed to keeping "a majority" of the stores open and most of the 10,000 employees on staff. Exact numbers were not provided.
The company said it remains open for business and will continue to honour gift cards, returns and loyalty point programs during the sale process, which it expects to complete within 60 days