Eddie Bauer Files for Bankruptcy as Inflation, Tariffs Impact Profits

Outdoor apparel retailer Eddie Bauer has filed for Chapter 11 bankruptcy and is weighing the sale of its stores in the U.S. and Canada as in-store sales have struggled in recent years.

Eddie Bauer’s leadership announced Monday that through the court’s help, it plans to liquidate up to 200 stores “as quickly and efficiently as possible,” stating that inflation and tariffs have interfered with its ability to pay back around $1 billion in debt.

In its filing with the Bankruptcy Court for the District of New Jersey, the clothing company owned by Authentic Brands Group said that its e-commerce and wholesale operations have not been impacted by these economic conditions, and that it may license the brand to other operators.

If Eddie Bauer is not able to find a buyer for its retail stores, the company said it will begin closures.

“Over the past year, these challenges have been exacerbated by various headwinds, including increased costs of doing business due to inflation, ongoing tariff uncertainty, and other factors,” Marc Rosen, CEO of Catalyst Brands, which operates Eddie Bauer, said in a statement. 

Catalyst manages six brands within the Authentic Brands portfolio, not including Eddie Bauer locations outside of the U.S. and Canada that are licensed to other companies.

“We are working to minimize the impact on the retail company’s employees, vendors, customers and other stakeholders,” Rosen continued. “However, this restructuring is the best way to optimize value for the retail company’s stakeholders and also ensure Catalyst Brands remains profitable and with strong liquidity and cash flow.”

In the New York metro area, Eddie Bauer has retail locations in Paramus and at American Dream mall in East Rutherford, N.J.

Eddie Bauer did not immediately respond to a request for further comment.

Mark Hallum can be reached at mhallum@commercialobserver.com.