Another winner has been named in a recent bankruptcy battle, this one over recently filed retail chain Eddie Bauer. The emerging victor is San Francisco-based private-equity firm Golden Gate Capital who won the brand in an auction after a $286 million bid. The firm plans to keep the majority of the brand’s 370 stores and employees, and continue to operate the business. The deal will be presented to bankruptcy court approval next Wednesday with a possible closing as early as next month.
Golden Gate Capital has apparently had a long-standing interest in the Eddie Bauer company. The equity firm has already obtained Bauer's brother divisions, Spiegel and Newport News. The former parent of the companies, Spiegel brand Inc., handed the divisions over during a post-bankruptcy reorganization in 2005. In addition to Bauer's brother divisions, Golden Gate has also acquired Haband, Appleseed’s, The Tog Shop, Draper’s & Damon’s, Sahalie and Norm Thompson. And although Eddie Bauer hasn't made a profit in three years, but a retail expert
says, "There's some real value in the stores and in the brand."
Article Source: WWD
Photo Source: eddiebauer.com
Tags: 370 stores, apparel, Appleseedâ€™s, bankruptsy, brand, business, Draperâ€™s & Damonâ€™s, Eddie Bauer, Golden Gate Capital, Haband, Newport News, Norm Thompson, retail, Sahalie, Spiegel, The Tog Shop