Iconic Outdoor Retailer Eddie Bauer Faces Store Closures as Operator Prepares Bankruptcy Filing
The future of nearly 200 Eddie Bauer stores across the United States and Canada hangs in the balance as the brand's licensed store operator prepares to file for Chapter 11 bankruptcy protection, according to sources familiar with the matter.
Catalyst Brands, the retail holding company that operates Eddie Bauer's North American store fleet under license, is nearing a bankruptcy filing, multiple sources confirmed to Business Insider. This move puts the roughly 180 physical locations at immediate risk of closure as part of a potential restructuring.
Founded in Seattle in 1920 by outdoorsman Eddie Bauer, the brand built its legacy on durable, functional apparel—most notably after Bauer patented the first quilted goose down jacket in the United States, the "Skyliner." Over its 106-year history, the company expanded from outerwear into hiking gear, travel luggage, and a full range of outdoor products.
Industry analysts note that while the store operations are under threat, the bankruptcy filing would not impact Eddie Bauer's manufacturing, wholesale, or e-commerce divisions, nor its retail presence outside North America. Japan, for instance, hosts several independently operated Eddie Bauer stores that are expected to continue unaffected.
"This is more about the retail operator's financial structure than the brand's underlying health," said retail analyst Marcus Thorne. "Eddie Bauer still has strong wholesale partnerships and direct-to-consumer channels. The store footprint was simply overextended under the current licensee."
Sources indicate that several parties have already expressed interest in acquiring portions of the existing store portfolio. In a Chapter 11 proceeding, these groups could bid on all or part of the operating business. Any successful bidder would then license the rights from Authentic Brands Group—which owns the Eddie Bauer brand and intellectual property worldwide—to run the remaining stores.
Authentic Brands Group declined to comment. Catalyst Brands, which also operates JCPenney, Nautica, and Brooks Brothers stores under license, did not immediately respond to requests for comment.
The news follows last month's announcement that Authentic Brands Group would transition Eddie Bauer's manufacturing, e-commerce, and wholesale licenses in North America from Catalyst to another operator, Outdoor 5—a move that signaled shifting strategies well before the bankruptcy rumors surfaced.
This marks the third bankruptcy threat in Eddie Bauer's modern history, following Chapter 11 filings in 2003 and 2009. The brand was acquired in 2021 by Authentic Brands Group in partnership with SPARC Group, which later rebranded as Catalyst Brands.
Reader Reactions:
"It's heartbreaking to see another heritage brand struggle. My first winter jacket was an Eddie Bauer—it lasted a decade. These stores are part of our outdoor community." – Rebecca L., avid hiker and longtime customer.
"This is what happens when private equity and licensing deals prioritize short-term gains over brand stewardship. They've stripped the soul out of a classic American outfitter." – David Chen, retail consultant (former Eddie Bauer merchandiser).
"Good riddance if the stores close. The quality hasn't been the same for years, and the in-store experience feels outdated. They need a full reboot, not just a financial patch." – Jordan P., outdoor gear reviewer (@TrailCritical).
"I'm worried about the employees—nearly 200 stores means thousands of jobs at risk. Hopefully, a buyer emerges who actually understands the outdoor market." – Maria Gonzalez, retail workers' advocate.