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.
In the course of one year, sourcing executives’ concern about U.S. protectionist trade policies have increased tenfold.Read more
This week weighed the value of stores and wholesale, questioned the accuracy of online retail as a job killer and highlighted the far-reaching effects of Amazon.Read more
Fruit of the Loom is pursuing a more sustainable path with its latest initiative.Read more
Trade talks between the U.S. and China ended Wednesday without so much as a joint statement on next steps, a plan for future trade relations or a date for the next round of talks.Read more
The apparel sector is starting to embrace more sustainable ways, and things like post-consumer recycled fibers, traceability and municipal collections seem to be hot topics in the sector.Read more
With its latest offerings, Amazon bows Spark, its own shoppable version of Instagram, as well as a direct competitor to meal kit companies like BlueApron.Read more
Though some consumers will pay extra special attention to what foods they eat, the medicines and vaccines their families take, their water purity, when it comes to their clothing, a lot of these same people don’t think much about where their apparel was made or even what fabric was used to make it.Read More Read more