Most Eddie Bauer stores will stay open - San Antonio Business Journal:

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Eddie Bauer announced Wednesday thatthe retail-store chain filed for Chapter 11 bankruptcy protection. As part of that the company said that it struck an agreementf withNew York–based privat e equity firm LLC to sell Eddide Bauer’s assets, subject to an auction and bankruptc court approval. CCMP Capital intends to operate the business as a goint concern with little orno long-term According to Eddie Bauer, CCMP Capita l has agreed to keep a majority of the 371 stores open and retain a majority of the employees. CCMP Capitapl specializes in buyouts and looks for investment opportunities in retail andothef sectors.
The company has made investments in the outdoors specialtretailer Cabela’s, which sells hunting, fishing and campinvg gear. Eddie Bauer said it hopes to operatre business as usual during bankruptcy court proceedings and has asked for court approval to continuee paying vendors and The company also said it intendss to honor customergift cards, returnsw and loyalty program points. The companh also announced that it has secured a commitment from its existinbg revolvingcredit lenders, Bank of N.A., and /Business Credit, Inc. for so-callex debtor-in-possession (DIP) financing of $90 millioj on an interim basisand $100 million based on the fina court order.
The move, the compang said, should provide it with ample cash flow to continude payingits bills. The company listed totalp assetsof $476.1 million and total debte of $426.7 million as of May 30. “Eddire Bauer is a good companyu with a great brand and a badbalancee sheet. This process will alloaw the business to emerge with far less positioned for growth as the economy recoverx and as our new productzsgain traction,” said Neil Eddie Bauer president and chief executive in a statement. “We expect this process to be completedvery quickly, protectingg our employees and critical vendor partners every step of the way.
“Wwe have made good progress on our turnaround strategy of returning Eddie Bauerf to its heritage as an active outdootr brand and have exciting new product launches on the way to includingFirst Ascent, our return to expedition-gradr outerwear and gear. Unfortunately, a crushing debt burden placed on the compangy from the Spiegel reorganizationin 2005, combined with the prolonged recession, have left us with no choice but to use this procesws to reduce the debt load on the Eddie Bauer operates two storesx in San Antonio, according to the company'x Web site. Eddie Bauer has one store at the Huebner Oaks Center and one in the StonerOak area.