Exclusive: Eddie Bauer to
explore options including sale - sources
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[June 24, 2017]
By Jessica DiNapoli and Greg Roumeliotis
(Reuters) - Debt-laden U.S. outerwear and
outdoor gear retailer Eddie Bauer LLC has hired investment banks to
explore strategic alternatives, including a potential sale of the
company, people familiar with the matter said on Friday.
Eddie Bauer has hired Guggenheim Partners LLC and Financo LLC to explore
its options, the people said. They said the company is not currently
pursuing a debt restructuring, although it is seeking relief from a $225
million term loan due in 2020 and $200 million revolving credit line
that comes due in 2019.
The sources asked not to be identified because the deliberations are
confidential. Golden Gate Capital declined to comment, while Eddie
Bauer, Guggenheim and Financo did not immediately respond to requests
for comment.
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Changing consumer tastes and a boom in internet shopping have prompted
upheaval in the retail sector. High-end retailers Neiman Marcus Group
Ltd LLC and J. Crew Group Inc have both retained advisors to slash their
debt loads. Others including Rue21 Inc and Gymboree Corp have filed for
bankruptcy.
Bellevue, Washington-based Eddie Bauer, with about 370 stores in the
United States and Canada, was acquired out of bankruptcy by buyout firm
Golden Gate Capital in 2009 with a cash bid of $286 million.
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![](../images/062417pics/busine79.jpg)
A sign outside a Eddie Bauer store is seen in Broomfield, Colorado
February 14, 2014. REUTERS/Rick Wilking
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Eddie Bauer, founded almost 100 years ago, was an acquisition target before. In
2014, men's apparel retailer Jos A. Bank planned to acquire Eddie Bauer for $825
million in an attempt to stay independent in the face of a bid from rival Men's
Wearhouse Inc. The bid for Eddie Bauer ended when Men's Wearhouse succeeded in
acquiring Jos A. Bank.
Eddie Bauer opened a flagship store on Fifth Avenue in New York City near Union
Square in New York City about two years ago, in an attempted turnaround that
also includes plans to launch a celebrity stylist-designed line in the fall.
Same-store sales at Eddie Bauer were up 8 percent for the holiday period between
Black Friday and New Year's Eve, and are up 6 percent year-to-date, according to
one of the sources.
Over the 12 months to April 1, however, Eddie Bauer has seen revenue declines
and lower gross margins, according to credit ratings agency Moody's Investors
Service Inc.
![](http://archives.lincolndailynews.com/2016/Aug/26/images/ads/current/ldn_medical_directory_small_2016.png)
Both Moody's and Standard & Poor's downgraded Eddie Bauer's debt recently,
warning that the brand may have to rely on borrowings to fund working capital
needs and interest expense.
(Reporting by Jessica DiNapoli and Greg Roumeliotis in New York; Editing by
David Gregorio)
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