In a dramatic turn for a brand long associated with rugged peaks and expedition parkas, Eddie Bauer files Chapter 11 protection in New Jersey bankruptcy court, signaling turbulence beneath the surface of the outdoor apparel icon.
Eddie Bauer LLC, the retail operator for the brand’s U.S. and Canadian stores, sought bankruptcy relief early Monday. In its petition, the company disclosed a staggering financial picture: more than 100,000 creditors and liabilities that could reach as high as $10 billion.
Billions in Liabilities, Hundreds of Millions in Assets
Court filings outline a wide financial gap. The company estimated its assets at between $100 million and $500 million, while listing liabilities ranging from $1 billion to $10 billion.
The debtor emphasized in a news release that it operates as a licensee of the Eddie Bauer brand, a distinction that separates the retail operator from the broader intellectual property ownership structure.
The figures paint a portrait of a retailer caught between shrinking demand and swelling obligations — a balance sheet stretched taut like a rope under strain.
