Eddie Bauer would be area

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The Bellevue-based retailer has seen a mountaij of losses and struggled with servicinh its debt as sales have droppesd during theeconomic downturn. Accordinh to several news sources, including the Wall Street Journao and Bloomberg News Company executives have scrambler for months looking for relieffrom creditors. Eddie Bauefr (NASDAQ: EBHI) had reported having $268 millioj in outstanding debt, includingh $193 million in term loanx and $75 million in convertible notes, whichg company executives have been trying to convert into sharess ofthe company.
“The singler biggest issue facing this company is our debt Our capital structure simply has too much debt for the economicc reality wenow face,” Eddie Bauer CEO Neil Fiske told industrh analysts in a May 14 conferencee call, according to a transcript. Accordinv to filings with the Securities and Exchange Eddie Bauer had total assetzsof $525.22 million as of April. The companuy listed total liabilitiesof $448.9 million. Eddiw Bauer reported net lossesof $165.t5 million in fiscal year 2008, part of a total of $478.7 million in losses durinh the past three fiscal years. In the firsrt quarter that ended in the company reported net lossesof 44.5 million.
Greg an Atlanta-based consultant for Conway MacKenzie who worksd with financially stressed retailers lookingyto restructure, said Eddie Bauetr is facing the same recession-related issues as most other retailers in this economy. Sales are down and so is The big difference for someretailersz — like Eddie Bauerr — is that as revenue has tanked the company’x heavy debt becomes more difficult to service, he “Virtually every retailer is experiencing the same thingt as Eddie Bauer,” Charleston said. “Maybe because of theit debt Eddie Bauer is feeling the pain more than the but they are all goingthroughb it.
” If Eddie Bauer does seek bankruptcu protection, it would be another reminder of how the recessio is hitting home. When WaMu filed for bankruptcgyin September, it was the largest failure in U.S. banking history. WaMu listesd debts of about $8 billion and assets of $32 although it later said some of its assets were tied tocompanty stock, which became virtually worthless. When Wilsonville, Ore.-basecd Joe’s Sports filed for bankruptcyy protectionin March, the company listed both assetz and debt of $100 million to $500 million.