The operator of Eddie Bauer, a Washington State-based sportswear company recognized for its goose-down jackets and outdoor apparel, filed for Chapter 11 bankruptcy protection in the District of New Jersey on Monday, reports Baltimore Chronicle via NYtimes. The company stated it intends to sell some or all of its roughly 220 stores across the United States and Canada in an effort to stabilize operations.
Eddie Bauer LLC reported that it had seen a surge in sales following the Covid-19 pandemic as consumers increasingly embraced outdoor activities. However, the company said that rising inflation, changes in consumer preferences, higher tariffs, and the closure of a loophole for cheaper imports significantly affected profit margins and overall earnings.
This marks the third bankruptcy filing for Eddie Bauer since its founding in the 1920s. The company first filed for Chapter 11 in 2003 and again six years later in the aftermath of the 2008 financial crisis.
Founded by entrepreneur Eddie Bauer in 1923 after suffering hypothermia on a winter fishing trip in Washington State, the company initially produced down jackets for personal use and for friends. Bauer patented his design, and the business gradually expanded from a single retail store to a national mail-order operation.
The brand has a long history of outdoor achievements. James W. Whittaker, the first American to summit Mount Everest in 1963, wore an Eddie Bauer parka during the expedition. During World War II, the United States Army Air Corps issued Eddie Bauer garments and sleeping bags as standard equipment.
By 2002, Eddie Bauer operated approximately 500 stores in the U.S., Germany, and Japan and had partnerships with other fashion labels such as Buck Mason and Homme Femme to integrate outdoor functionality with urban casual wear.
Eddie Bauer’s latest bankruptcy occurs amid broader turbulence in the U.S. retail sector. Some companies have reduced operations to focus on their most profitable divisions while navigating supply chain disruptions and global economic uncertainty. Earlier this year, Amazon announced plans to close physical stores to concentrate on expanding Whole Foods Market and grocery delivery services. Similarly, Saks Global, owner of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, filed for bankruptcy protection in January.
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