Quick Read
- Catalyst Brands, operator of Eddie Bauer stores in the U.S. and Canada, filed for Chapter 11 bankruptcy on February 9, 2026.
- This is the third bankruptcy filing associated with the Eddie Bauer brand in just over two decades.
- Most U.S. and Canadian stores will remain open, but some locations are slated for closure as part of restructuring.
- Eddie Bauer’s e-commerce and wholesale operations, run by Outdoor 5 LLC, are unaffected by the filing.
- Authentic Brands Group retains ownership of the Eddie Bauer brand’s intellectual property.
NEW YORK (Azat TV) – The operator of approximately 180 Eddie Bauer retail and outlet stores across the United States and Canada, Catalyst Brands, filed for Chapter 11 bankruptcy protection on Monday, February 9, 2026. This marks the third time in just over two decades that the iconic outdoor brand has been tied to a bankruptcy filing, underscoring ongoing struggles with declining sales and intense pressures within the broader retail industry.
Eddie Bauer LLC, a subsidiary of Catalyst Brands, submitted its filing to the U.S. Bankruptcy Court for the District of New Jersey, announcing a restructuring agreement with its secured lenders. While most Eddie Bauer stores in North America are expected to remain open during the bankruptcy proceedings, the company indicated plans to close certain locations as part of a broader restructuring. A court-supervised sales process is also underway, with the potential for a complete wind-down of North American retail operations if no buyer emerges.
Eddie Bauer’s Immediate Impact on Customers and Operations
For customers, the immediate effects of the bankruptcy are anticipated to be minimal. Catalyst Brands stated that most Eddie Bauer retail and outlet stores in the U.S. and Canada will continue operations throughout the Chapter 11 process. Crucially, Eddie Bauer’s e-commerce and wholesale businesses will not be impacted, as these operations are managed separately by Outdoor 5 LLC, a transition that became effective on February 2 following an announcement in January. Furthermore, Eddie Bauer stores outside the U.S. and Canada, which are run by different licensees, are not part of this bankruptcy filing and will continue to operate normally.
Gift cards, returns, and loyalty programs are typically honored during the initial phases of Chapter 11 restructuring. However, the company did not immediately clarify whether any customer policies would be altered as the process unfolds or if stores begin to close. Authentic Brands Group, which owns the intellectual property for the Eddie Bauer brand, including its name and trademarks, confirmed that its ownership remains intact. Authentic Brands Group retains the option to license the brand to other operators in the future, irrespective of the outcome of the current restructuring efforts.
Challenges Driving Eddie Bauer’s Bankruptcy Filing
The latest bankruptcy filing highlights the persistent challenges facing Eddie Bauer in a rapidly evolving retail landscape. Marc Rosen, Chief Executive Officer of Catalyst Brands, acknowledged that Eddie Bauer was already in a “challenged situation” prior to the formation of Catalyst Brands last year through the merger of SPARC Group and JCPenney. He stated that conditions worsened over the past year due attributing it to various headwinds, including increased operating costs due to inflation and ongoing tariff uncertainty. Rosen noted that while improvements were made in product development and marketing, these changes could not be implemented quickly enough to counteract years of underperformance.
Retail analysts echo these sentiments, pointing to Eddie Bauer’s struggle to maintain relevance against newer, more technically focused competitors. Neil Saunders, managing director of GlobalData Retail, observed that while Eddie Bauer remains a recognizable name, it has lost significant market share to rivals such as Fjällräven and Arc’teryx. Saunders also raised concerns about a perceived decline in product quality, which he described as a “major problem” for an outdoor brand where performance is paramount. Many younger consumers, he added, now view Eddie Bauer as ‘old-fashioned and a bit irrelevant.’
A Century of History and Repeated Financial Setbacks
Founded in Seattle in 1920 by avid outdoorsman Eddie Bauer, the brand initially gained renown for pioneering American-made goose-down outerwear. Notable achievements include introducing the “Skyliner,” the first patented down jacket in the U.S., in 1936, and outfitting mountaineer James W. Whittaker for the first successful American ascent of Mount Everest in 1963. During World War II, the company supplied over 50,000 jackets and sleeping bags to the U.S. military. After Bauer’s retirement in 1968, the brand gradually shifted from technical outdoor gear to more casual apparel, changing ownership multiple times.
The brand’s financial woes are not new. Following Spiegel Inc.’s bankruptcy in 2003, Eddie Bauer was reorganized as Eddie Bauer Holdings Inc. in 2005. It then filed for bankruptcy again in 2009 before being acquired by Golden State Capital. In 2021, Authentic Brands Group and SPARC Group acquired the brand, continuing a trend of licensing-focused ownership rather than direct retail operation. At its peak in 2001, Eddie Bauer boasted nearly 600 stores, according to CoStar Group Inc., a significant contrast to its current footprint.
This latest bankruptcy filing underscores the ongoing difficulty for heritage brands like Eddie Bauer to navigate a fiercely competitive retail environment, highlighting the critical need for constant innovation and adaptation to evolving consumer preferences to avoid repeated financial distress.