Eddie Bauer, the iconic outdoor apparel brand, has filed for Chapter 11 bankruptcy protection, seeking to sell its approximately 180 stores across the United States and Canada amidst declining sales and persistent industry challenges.
The operator of Eddie Bauer stores, Eddie Bauer LLC, submitted the bankruptcy filing on Monday, February 9, 2026, in the U.S. Bankruptcy Court for the District of New Jersey. This move marks the third time the century-old company has sought bankruptcy protection, following similar actions in 2003 and 2009. The company cited a combination of factors including reduced consumer spending, supply chain disruptions, inflation, and ongoing tariff uncertainties as primary drivers for the financial distress.
Most of the retail and outlet locations in the U.S. and Canada will remain operational during the court-supervised sales process. However, if a suitable buyer cannot be found, the company plans to wind down these operations, potentially leading to store closures. A spokesperson noted that the timeline for individual store closures remains uncertain, emphasizing efforts to minimize disruption for employees and customers.
Importantly, Eddie Bauer’s e-commerce and wholesale activities will continue unaffected, as they were recently transitioned to a separate entity, Outdoor 5 LLC, effective February 2. Additionally, stores outside North America, operated by other licensees, are not included in the bankruptcy filing and will stay open. This restructuring aims to preserve the brand’s online presence and international footprint while addressing the core retail challenges.
The bankruptcy stems from long-standing issues within the company. Eddie Bauer was founded in Seattle in 1920 and gained fame for innovations like the down-insulated Skyliner jacket and outfitting historic expeditions. However, in recent years, the brand has struggled to compete with modern outdoor rivals such as Fjallraven and Arc’teryx, with critics noting deteriorating product quality and a perception of being outdated among younger consumers.
This filing occurs against a backdrop of broader retail instability. Earlier this year, Saks Global filed for bankruptcy, and other chains like Amazon have scaled back physical stores. The retail sector faces headwinds from high debt loads, shifting consumer preferences, and economic pressures, making Eddie Bauer’s situation emblematic of wider trends in the industry.
Looking ahead, the company’s CEO, Marc Rosen of Catalyst Brands, expressed regret over the decision but highlighted it as necessary to optimize value for stakeholders. Catalyst Brands, formed through recent mergers, will continue to manage other brands in its portfolio. The restructuring could lead to a revitalization under new ownership or, if unsuccessful, a gradual shutdown of North American stores.
In conclusion, Eddie Bauer’s bankruptcy filing underscores the volatile nature of the retail landscape, where even heritage brands must adapt swiftly to survive. The outcome will depend on the success of the sales process, with potential implications for thousands of employees and the future of a storied American name in outdoor apparel.
