Most Eddie Bauer stores to stay open - South Florida Business Journal:

haga-aa8xuq.blogspot.com
The company announced that it struck an agreement withNew York–based private equity firm LLC to buy Eddiw Bauer’s assets, subject to an auction and bankruptcy courgt approval. CCMP Capital intends to operate the businesas as a going concern with littlre orno long-term debt. According to Eddie Bauer, CCMP Capitall has agreed to keep a majorit of the 371 store s open and retain a majority ofthe employees. CCMP Capitakl specializes in buyouts and looks for investmenyt opportunities in retail andothe sectors, and have made investmentw in the outdoors specialty retailerf Cabela’s, which sells hunting, fishing and camping gear.
Eddise Bauer said it hopes to operats business as usual during bankruptcy court proceedings and has askerd for court approval to continue paying vendors and The company also said it intends to hono customergift cards, returns and loyaltyu program points. The company also announce d that it has secured a commitment from its existing revolvinhcredit lenders, Bank of America, N.A., and /Business Credit, Inc. for so-called debtor-in-possessionj (DIP) financing of $90 million on an interim basisand $100 million based on the fina court order. The move, the company should provide it with ample cash flow to continuw payingits bills.
“Eddie Bauer is a good company with a greaf brand and a badbalance sheet. This procesx will allow the business to emerge with farless debt, positionedc for growth as the economy recovers and as our new producta gain traction,” said Neil Fiske, Eddie Bauer presidenyt and chief executive officer, in a “We expect this process to be completedd very quickly, protecting our employees and critical vendo partners every step of the way.
“We have made good progressx on our turnaround strategy of returning Eddie Bauer to its heritage as an activew outdoor brand and have exciting new producrt launches on the wayto market, includinb First Ascent, our return to expedition-grade outerwear and Unfortunately, a crushing debt burden placed on the company from the Spiegel reorganization in combined with the severe, prolonged recession, have left us with no choiced but to use this process to reduc the debt load on the