NEW YORK, February 10, 2026, 06:51 (EST)
- Eddie Bauer’s store operator has filed for Chapter 11 bankruptcy protection in New Jersey, launching liquidation sales at stores throughout the U.S. and Canada.
- The retailer’s going through a court-run sale process; unless a buyer steps up, a complete wind-down is on the table.
- The e-commerce and wholesale businesses are operating independently and aren’t included in the store bankruptcy.
Eddie Bauer’s store operator has filed for Chapter 11 bankruptcy in New Jersey, kicking off liquidation sales at roughly 180 stores across the U.S. and Canada as it tries to find a buyer. According to court documents, debt stands at around $1.7 billion, with a court-approved sale deadline set for March 12. 1
The implications of the filing stretch beyond just one label. Eddie Bauer announced it has secured a restructuring support agreement with its secured lenders—a move aimed at locking in creditor approval—as it works on a “going concern” sale, which might let a buyer keep parts of the chain up and running. Its e-commerce and wholesale segments aren’t expected to pause; those will stay active under Outdoor 5, which operates them separately under license. 2
Retailers are leaning on liquidations as they keep trimming their footprints. According to CoStar News, which referenced data from Coresight Research, U.S. chains had flagged 1,824 store closings and 1,259 new locations so far this year, through Friday. CoStar also noted that Eddie Bauer is now pitching itself to buyers, joining struggling names like Saks Global and Francesca’s. All of them are pushing ahead with closing sales. 3
Eddie Bauer LLC plans to keep the majority of its retail and outlet stores running as it moves through a court-supervised sales process, though certain locations are slated for closure. The company noted that stores operated by licensees outside the U.S. and Canada aren’t affected by the Chapter 11 proceedings. 4
Eddie Bauer, in its bankruptcy paperwork, listed over 100,000 creditors and pegged assets between $100 million and $500 million, while liabilities sit somewhere from $1 billion up to $10 billion. According to Business Insider, the Chapter 11 filing only applies to the North American retail division; manufacturing, wholesale, and e-commerce businesses remain outside the case. 5
Time is running short. According to court filings reported by Retail Dive, the company has started going-out-of-business sales and is looking to shutter its 175 stores by April 30, unless it finds a buyer. The retailer’s cash position sits at roughly $20 million, and it’s asked the court for permission to tap into cash collateral — money that’s already pledged to lenders — to keep things afloat during bankruptcy proceedings. 6
“This is not an easy decision,” Catalyst Brands CEO Marc Rosen said, citing sluggish sales, supply-chain snags and “ongoing tariff uncertainty” squeezing the retail business. CBS News reported the company will continue serving customers in its stores as it closes some locations. 7
The brand’s owner is shifting more of its business into channels untouched by litigation. Authentic Brands Group, in a separate statement Monday, said Outdoor 5 now handles Eddie Bauer’s e-commerce and wholesale across the U.S. and Canada, with the First Ascent performance line making a comeback. “Our focus is on Eddie Bauer’s roots in the outdoors while expanding its digital and wholesale reach,” said David Brooks, an executive at Authentic. 8
Eddie Bauer is bracing for more legal moves in Canada. The company told The Canadian Press it operates 24 Canadian stores and plans to seek court protection there—aiming to shield its assets and ensure any sale sticks on both sides of the border. Retail adviser Wendy Salisko, in an email, pushed for a buyer willing to “cut down to the boxes you actually believe in” instead of trying to salvage all the stores. 9
CNN’s report notes this marks Eddie Bauer’s third bankruptcy since the early 2000s, after Chapter 11 filings in 2003 and 2009. The retailer said it will keep most stores running in both the U.S. and Canada as it looks for a buyer, but warned closures could hit if a deal doesn’t come together. 10
