Report: Eddie Bauer Looks for a Buyer

Print Friendly, PDF & Email

Eddie Bauer

With debt weighing heavily on its shoulders, Eddie Bauer is said to be exploring its strategic alternatives.

The outdoor apparel brand is looking for a buyer and exploring other options, sources have told Reuters. Eddie Bauer has hired Guggenheim Partners LLC and Financo LLC.

Eddie Bauer reportedly has a $225 million term loan due in 2020 and $200 million revolving credit line that’s due in 2019. Unlike retailers like J.Crew and Neiman Marcus that are currently in similar straits, the company is not looking to restructure its debt at this point.

In addition to the the range of ills currently plaguing the apparel retail sector, Eddie Bauer, which has been around for more than 95 years, has been attempting to pivot its business to recapture some of it’s outdoor credibility. From focusing on women’s apparel, the company is now concentrating on offering everyday wear with performance feature for the whole family.

The retailer’s CEO Mike Egeck told Fortune in November that performance-based goods have been growing 15 percent a year for the last four years.

The debt the retailer acquired after Golden Gate Capital purchased it out of bankruptcy in 2009 has hampered the company’s efforts.

Moody’s Investors Services and Standard & Poor’s have downgraded Eddie Bauer recently based on the company’s revenue declines and low gross margins, calling its liquidity level and credit metrics “unsustainable.”

Eddie Bauer, which reportedly does roughly 40 percent of its business online, operates 370 stores in the U.S. and Canada.


Recent News

Financial Roundup: Abercrombie Comps up on Hollister; Gap Rides Athleta, Old Navy to Sales Gains

Abercrombie & Fitch continues to rely on Hollister gains, while positioning the Abercrombie brand for similar success. Gap sales up on Athleta, Old Navy performance.

This content is for Annual, Monthly and Limited members only. You can read up to five free articles each month with a Limited Level Subscription. Please log in, or register.
Log In Register
Read more

“Uncertainty” Over Trump Policies Makes Frenemies of Importers, Domestic Producers

The domestic textile industry and apparel importers have often been on opposite sides of U.S. trade issues, but in today’s political climate they seem to have found some common ground.

This content is for Annual, Monthly and Limited members only. You can read up to five free articles each month with a Limited Level Subscription. Please log in, or register.
Log In Register
Read more

Lord & Taylor Teaming With Walmart, a Desperate Last Gasp or a Brilliant Move Toward the Future?

While everyone’s been focused on the "retail apocalypse," the real story to emerge from 2017 might be the strange bedfellows that have emerged as everyone tries to plot a course forward. The recent partnership between Walmart and Lord & Taylor is the latest to get people talking.

This content is for Annual, Monthly and Limited members only. You can read up to five free articles each month with a Limited Level Subscription. Please log in, or register.
Log In Register
Read more