Rugged Retailer Eddie Bauer Files for Bankruptcy

June 18, 2009

(ChattahBox)—Like many struggling retailers in this severe economic downtown, the online-based retailer Eddie Bauer announced it was forced to file for Chapter 11 Bankruptcy on Wednesday. Known for its rugged outdoor wear, the retailer hopes to avoid a liquidation, as it reorganizes.

As the unemployment rate increases, consumers are struggling to pay their mortgage and put food on the table and are avoiding any unnecessary expenses, like clothing and restaurant meals. As a result, retailers have been taking a big hit, with a few already long gone from the shopping malls, such as retail chains Linens ‘n Things and Circuit City.

With mounting debt payments combined with a steep drop in earnings, Eddie Bauer quickly ran out of options and was forced to file for reorganization. Eddie Bauer is not alone; many retail department stores have seen double-digit same-store sales declines, as the recession deepens.

According to a filing with the SEC, Eddie Bauer had total assets of $525.22 million in April. The company listed total liabilities of $448.9 million.

The retailer reported net losses of $165.5 million in fiscal year 2008, with net losses of 44.5 million at the end of April.

Eddie Bauer saw a steep decline in its brick and mortar stores sales, with the outlets reporting a whopping 76 percent decline! That steep of a sales decline is not sustainable for long.

No word yet on store closings. Eddie Bauer currently has 370 brick and mortar stores, including 251 retail stores and 119 outlet stores in the United States and Canada.

Source


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One Response to “Rugged Retailer Eddie Bauer Files for Bankruptcy”

  1. Rugged Retailer Eddie Bauer Files for Bankruptcy Adding Info on June 18th, 2009 9:45 am

    […] the unemployment rate increases, consumers are struggling to … Read Full Post: Rugged Retailer Eddie Bauer Files for Bankruptcy Adding Related Info:Eddie Bauer Files For Bankruptcy Protection – CBS 3 PhiladelphiaEddie Bauer […]

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