106-Year-Old U.S. Retailer to Close All Stores in Bankruptcy
Synopsis
After 106 years on the American high street, Eddie Bauer is getting ready to close all of its physical stores. The popular outdoor retailer is on the brink of its third Chapter 11 filing, a move that will see it close upwards of 200 sites in the U.S. and Canada. Hundreds of retail workers are being laid off, but the brand is not going away altogether. Eddie Bauer is expected to take its business online and into other retail stores. This is why this retail behemoth is finally leaving the mall once and for all.
SEATTLE — Selling rugged jackets and camping gear for more than a century, Eddie Bauer is now ready to close every one of its retail stores. The 106-year-old brand is preparing to file for Chapter 11 bankruptcy for the third time in its long history, according to reports. That decision will result in a complete withdrawal from physical retailing in North America, with more than 200 locations slated to disappear from malls and shopping centres.
Though the brand has endured financial scares before, this filing marks a more lasting change. That’s as the company shifts away from operating its own brick-and-mortar stores, to selling products exclusively through its website and other wholesale partners.
Mass Store Closures Open the Next Chapter in a Century of Retailing History
Eddie Bauer, was a small-time purveyor of goods for golfing and fishing in Seattle that grew to become a household name. But today’s world of shopping has not been kind to the venerable chain. The impending store closings will take their toll on the major shopping centres across the United States and Canada, adding hundreds of empty storefronts and massive layoffs for the staff that remains.
Analysts believe the brand faced difficulty standing out in a market that has become crowded with high-technology competitors like The North Face and Patagonia. Eddie Bauer may have been a trailblazer, creating the world’s first quilted down jacket, but over time its stores became crammed and didn’t offer the best shopping experience, losing the “spark” that once drew outdoorsy types.
Saved Twicd, but Failed by a Third Effort
It’s not the first time the company has contended with a retail bankruptcy. Eddie Bauer had first sought Chapter 11 bankruptcy protection in 2003, when its corporate parent got into serious financial trouble. It refiled on its own in 2009 amid the Great Recession, weighed down with burdensome debt and flagging sales.
In those instances, the company was able to reorganise itself and keep stores open. But this time is different. And the current owners, Catalyst Brands, are said to be taking on the bankruptcy process in a bid to jettison brick-and-mortar stores with pricey operating costs. They can instead concentrate on the parts of their businesses that still turn a profit: online sales and selling their gear through other big-name retail outlets.
Layoffs and Retail ‘Pivoting’ effects
All stores will be closing as a result, which also means thousands of retail employees will lose their jobs. These layoffs are happening at a time when many other “legacy” brands, like Sears and K-Mart, are also vanishing.
But the “Eddie Bauer” name will live on. The company has already begun to transition its online shop and manufacturing to a new partner called Outdoor 5. What that means: People will still be able to buy an Eddie Bauer fleece or sleeping bag online, but they will no longer be able to walk into a brick-and-mortar Eddie Bauer store at the nearest mall and try it on.
Why Malls Are Losing Their ‘Anchors’
The passing of Eddie Bauer’s retail chain is just one small facet of a broader overall trend referred to as the “retail apocalypse.” Big brands that were once “anchor” tenants in shopping malls are finding it too expensive to pay rent when so many people would rather just shop on their phones.
This is another massive blow for mall owners. Eddie Bauer follows a parade of once-iconic names like Lord & Taylor, Rite Aid and Hudson’s Bay that have disappeared or shifted solely online. As these 100-year-old brands leave the stage, the fate of America’s shopping malls looks as uncertain as ever.
Key Highlights
- The Filing: Eddie Bauer is planning its third Chapter 11 bankruptcy filing.
- Mass Closures: More than 200 retail stores in North America are likely to close.
- Job Cuts: The move will mean thousands of layoffs for retail and store management workers.
- Digital Future: The brand will continue as an online-only and wholesale business.
- International News: Eddie Bauer stores in Japan are said to be unaffected by this filing.
Follow Inspirepreneur Magazine for the latest American breaking news.
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
You Might Also Like
Decarbonisation and Sustainable Growth: How Businesses can Achieve Both
ABC Poaches Senior Reuters Editor Simon Robinson To Lead News Division
