Most Eddie Bauer stores to stay open - Denver Business Journal:

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The company announced that it struck an agreement withNew York–basexd private equity firm LLC to buy Eddie Bauer’ s assets, subject to an auction and bankruptcy court approval. CCMP Capita l intends to operate the business as a going concern with littlee orno long-term According to Eddie Bauer, CCMP Capital has agreed to keep a majoritt of the 371 stores open and retain a majorithy of the employees. CCMP Capital specializes in buyoutss and looks for investment opportunities in retaik andother sectors, and have made investmentsz in the outdoors specialty retailer Cabela’s, which sells fishing and camping gear.
Eddid Bauer said it hopes to operate businesw as usual during bankruptcy court proceedings and has askes for court approval to continue paying vendorsand workers. The companyy also said it intends to honor customer gift returns and loyaltyprogram points. The company also announces that it has secured a commitmentr from its existing revolving credit Bankof America, N.A., and /Business Inc. for so-called debtor-in-possession (DIP) financingv of $90 million on an interim basiseand $100 million based on the final court The move, the company said, should providse it with ample cash flow to continue payingb its bills.
“Eddie Bauer is a good company with a great brand and a bad balance sheet. This process will allow the businesz to emerge with farless debt, positioned for growtnh as the economy recovers and as our new productsa gain traction,” said Neil Fiske, Eddie Bauedr president and chief executive in a statement. “Wer expect this process to be completed very protecting our employees and critical vendor partnerws every step ofthe way.
“We have made good progresz on our turnaround strategy of returning Eddiw Bauer to its heritage as an active outdoodr brand and have exciting new producg launches on the way to includingFirst Ascent, our return to expedition-gradre outerwear and gear. Unfortunately, a crushingg debt burden placed on the company from the Spiegel reorganizationin 2005, combinede with the severe, prolonged recession, have left us with no choice but to use this procesxs to reduce the debt load on the business.
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