Eddie Bauer files Ch. 11
Redmond, Wash Eddie Bauer Holdings Inc. became the latest casualty of the recession when it filed for Chapter 11 bankruptcy protection on Wednesday.
As part of the filing, the company has an agreement to sell its assets to private-equity firm CCMP Capital Advisors LLC for $202 million in cash. CCMP has agreed to keep most of the stores and employees, though the sale is open to other bidders per bankruptcy law.
Eddie Bauer said it secured financing from Bank of America and CIT Group/Business Credit for a total $100 million based on final court order. It blamed a “crushing” debt load and the recession for the filing.
“This process will allow the business to emerge with far less debt, positioned for growth as the economy recovers and as our new products gain traction,” said Neil Fiske, CEO of Eddie Bauer.
The filing, made in U.S. Bankruptcy Court in Delaware, is the second bankruptcy for the outdoor-clothing company. The retailer emerged from Chapter 11 bankruptcy in 2005 after its former owner, Spiegel Catalog, sought bankruptcy protection in 2003.
Eddie Bauer has been posting losses on falling sales this year. In January, the company hired investment banking firm Peter J. Solomon Co. for restructuring advice, and it has been working to cut costs and preserve cash.
The company, whose 371 stores remain open for business, said last month its first-quarter revenue fell 16% to $179.8 million.
Video surfaces on Target.com
Trend expert and author Jane Buckingham makes an appearance this week on Target.com, as she shares advice in a brief video positioned as the retailer’s Summer Survival Guide. Buckingham wrote the book the “The Modern Girls Guide to Life” and serves as president of a trend consulting firm. The advice she shares in the video centers on three themes of “color coordination,” “camp next door” and “treat yourself.”
Westinghouse reshuffles jobs, promotes executive
Westinghouse Lighting has named Joe Catrambone as its VP supply chain, a newly created position that will encompass the company’s product management, inventory management, key customer inventory management, purchasing, traffic/logistics, customer direct import and quality control areas in the United States and Asia.
Since mid-2008, Catrambone has focused on unifying supply chain functions while improving internal processes and efficiency, according to Westinghouse. In his new role, he will lead efforts to integrate Westinghouse’s Asian supply chain operations with its corporate supply chain department and quality control.
Catrambone’s most recent title was senior director of sales.