The operator of approximately 180 Eddie Bauer stores across the U.S. and Canada filed for Chapter 11 bankruptcy protection on February 9, 2026, citing declining sales and a range of industry headwinds. The bankruptcy filing, made in the U.S. Bankruptcy Court for the District of New Jersey, resurfaces challenges faced by the iconic outdoor brand, which began as a fishing shop in Seattle in 1920 and played a prominent role in outfitting outdoor pioneers, including the first American to summit Mount Everest.
Eddie Bauer LLC has reached a restructuring agreement with its secured lenders and will conduct a court-supervised sales process to attempt to sell parts of its operations. If a sale is not feasible, the company will begin to wind down its U.S. and Canadian operations. However, most Eddie Bauer retail and outlet stores will remain open during this transition.
Marc Rosen, CEO of Catalyst Brands—who maintains the license to operate Eddie Bauer stores—mentioned, “This is not an easy decision... However, this restructuring is the best way to optimize value for the retail company’s stakeholders and ensure Catalyst Brands remains profitable.”
Eddie Bauer's stores outside of the U.S. and Canada are not included in the Chapter 11 filings and will continue to operate, as these are managed by other licensees. The brand’s e-commerce and wholesale operations are also unaffected and are handled by Outdoor 5, LLC, a transition effective February 2, 2026.
The brand has faced multiple bankruptcy proceedings in the past, including filings in 2003 and 2009. At its peak in 2001, Eddie Bauer boasted nearly 600 stores, but has seen a sharp decline in physical locations and market relevance amid increasing competition from brands like Fjallraven and Arc'teryx. Analysts have noted that the brand has struggled to maintain its image among younger shoppers, who view it as outdated.
In recent months, Eddie Bauer's challenges have been compounded by inflation and supply chain issues, leading to a pronounced decline in financial performance. The company currently lists estimated assets of $100 million to $500 million against liabilities ranging from $1 billion to $10 billion, affecting over 100,000 creditors.
Overall, the future of Eddie Bauer hangs in the balance as it navigates this latest phase of financial restructuring, aiming to remain as a viable business while addressing the long-standing issues that have plagued its operations.