Eddie Bauer Goes Bankrupt
June 17, 2009 by Stephen Kersey
Filed under Business
Eddie Bauer, a clothing store chain with approximately 9,500 employees around the world, has filed for bankruptcy. The Wall Street Journal is reporting that the company will be purchased by CCMP Capital Advisors.
According to court documents, Eddie Bauer has more than $425 million in debt. In the Chapter 11 bankruptcy protection, the company will likely try to slim down in attempt to survive these rough global economic times.
Founded in 1920 and currently headquartered in Bellevue, Washington, Eddie Bauer has stores in multiple countries including the United States, Japan, Germany and Canada.
Eddie Bauer going bankrupt is far from surprising. Reports indicate that the company lost nearly $45 million in the first quarter and it was becoming painfully obvious that surviving this economic period in which consumer spending is down wasn’t going to be possible for Eddie Bauer.
Eddie Bauer (Image: Flickr)
Oh, how the mighty have fallen — putting thousands upon thousands of jobs at risk, or even causing them to disappear entirely. I guess that’s what happens when your business model is primarily based on consumers spending more than they can afford. Ironically, if they were founded in 1920, they would have successfully navigated the Great Depression I of the 1930s…