Eddie Bauer Files For Bankruptcy, Will Continue Operations

Clothing retailer feeling the hard times

Here lies another clothing retailer. Weep for them...

When consumer confidence is as low as it has been, it’s a hard sell getting lots of people to come out and spend their money on outdoor wear. They can sulk about the state of their bank accounts perfect well indoors, thank you. It’s been more important that they cover their bills with help from cheap loans and instant payday loans.

But some people say shopping is good therapy, even if it’s window shopping. But American apparel chains could definitely use more of the former, as bankruptcy cases have been popping up all over. Mervyn’s, Steve & Barry’s, Goody’s and Gottschalk’s have fallen under the axe. Now Eddie Bauer and bankruptcy will be spoken in the same sentence. It’s a fact. Cost cuts, management and merchandise changes weren’t enough to save the outfitter from this legal action.

Not as messy as some, however

Stephanie Rosenbloom and Michael de la Merced report for the New York Times that the outdoor-clothing chain has filed for Chapter 11 bankruptcy protection. The company plans to sell itself to private equity firm CCMP Capital for $202 million. Bank of America, General Electric and the CIT Group have agreed to provide as much as $100 million in financing during Eddie Bauer’s bankruptcy hearing. ... click here to read the rest of the article titled "Eddie Bauer Files For Bankruptcy, Will Continue Operations"