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Add another legacy retail brand to the list of notable market exits over the last few years. According to WWD, Eddie Bauer is preparing to file for Chapter 11 bankruptcy, with unnamed sources claiming that the retailer would be closing down an estimated 200 locations across North America.
Things get a little bit complex from there. Following the formation of Catalyst Brands last year (by Simon Property Group, Brookfield Corp., Authentic Brands Group and Shein) -- with Eddie Bauer, Aeropostale, Lucky Brand, Brooks Brothers, Nautica, and JCPenney making up the brand holdings -- Eddie Bauer's reported bankruptcy would leave the manufacturing, e-comm, and wholesale operations in North America intact. Those operations are currently in the process of transitioning away from Catalyst Brands "to a new licensee," as WWD's Jean E. Palmieri noted.
"Beginning Monday, Eddie Bauer will move its e-commerce, wholesale, design and product development to Outdoor 5, a global brand development and licensing platform. That deal was announced on Jan. 8. The bankruptcy filing is expected to happen once that has been completed, or later in the month," Palmieri wrote.
"A Chapter 11 filing would also not impact the 20 or so Eddie Bauer stores operating in Japan," the WWD editor added.
Eddie Bauer: A Legacy Retailer With a Checkered Recent Past?
With Eddie Bauer being a "heritage brand," as Palmieri termed it, with its history stretching back more than 100 years, the loss of the brand marks another milestone exit from North American retail.
TrustPilot awarded Eddie Bauer a poor 1.3-star score out of five, based on more than 1,100 shopper reviews. Complaints hinged around a perceived drop in quality in recent years, and order issues -- including delays, items going missing, incorrect shipments, and poor customer service interactions abounded.
"The general sentiment is that the business does not value its customers and has poor business practices. Some consumers also report issues with the product itself," the TrustPilot AI review summary concluded.
Users on Reddit seemed to echo these criticisms, with top-rated comments (and complaints) surrounding the assortment, product aesthetic, and quality control. Other users pointed the finger at uninterested investors and overexpansion of the brand's retail footprint.
"From the same investors that brought you today’s Brooks Brothers. Private equity ruins great brands," the top-rated comment from user yikes_ae read.