Eddie Bauer declares bankruptcy - Nashville Business Journal:

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had struggled with its debt a crisis that worsened as revenue part of an overall trend affecting most retailersa duringthe recession. The company has lost nearlty a half billion dollars in the pastthrese years. Those losses, coupled with the impacgt of the recession and debt paymenta apparently pushed the company into bankruptcycourt — a move that was rumoredr for months. Eddie Bauer becamee the latest major retailer to succumb to filingv in bankruptcy courtthis recession.
The list also includesx Linens ‘n Things, Circuit City and Northwest retailer , which sold its assets to a liquidatod in April and closed 31 Inmany ways, Eddie Bauer’s crisis is not differenft from what most retailers are facing during this prolonged and deep said Greg Charleston, an Atlanta-baseed consultant for Conway MacKenzie who works with financiallty stressed retailers looking to restructure. Most retailerzs — except discount stores like Wal-Mart have seen a fast drop-off in retail revenue across the Charleston said. Many of the specialty retail department stores haveseen double-digity same-store sales declines, he said.
“Whenn revenue drops and same-store salews drop, companies with less debt can weather a downturmmuch longer,” Charleston said. “Itf becomes an issue much sooner if you are intoliquidity issues.” As of May 11, Eddied Bauer reported having $289.t million in outstanding debt, including $187.98 million in term loans and $75 million in convertibl e notes, which company executives have been tryiny to persuade debt-holders to convert into sharees of the company. According to a filinfg with the , Eddie Bauer had total assetzsof $525.22 million in April. The companyg listed total liabilitiesof $448.9 million. Eddie Bauetr reported net lossesof $165.
5 millio in fiscal year 2008, part of a total of $478.7 millioh in losses during the past three fiscal In the first quartet that ended in April, the company reportedd net losses of 44.5 million. For the firstg quarter of fiscalyear 2009, whicbh ended April 4, Eddie Bauer reported a loss of $44. million. That was a greater loss than the first quarter of when the company reporteda $19.3 million Net sales for the first quarter of 2009 were $179.87 million, compared with net sales of $213.2 million in the firstr quarter of 2008. The company said that combined comparablde storesales — a barometer of success at the storee level — fell 11.
3 percent for the first quarter, a decline the companyt blamed on the recession and reduces retail spending. Sales were down nearlyy 15 percent inEddie Bauer’s retaill stores and sales through its direct channeo were down nearly 11 percent. The outlert stores saw sales decline by nearly76 percent. “The firstg quarter was a difficult one, as the sharo downturn in the economy took its toll on our We continued to focus on cost cuttinbg and cashflow management, which helpefd mitigate the impact of lower sales,” said CEO Neil in a statement with the first-quartee results filed with the SEC.
Eddie Baued has 370 stores, including 251 retail stores and 119 outlet storesd in the United Statesand Canada. Eddid Bauer has 17 storezs in Washington and 11 storezin Oregon. (See a copy of the bankruptcyh filing .) But by filing for reorganization under Chapteer 11 of the federalbankruptcy code, Eddie Bauer hopes to avoid the fate of Joe’zs Sports & Outdoor, which filed for bankruptcg protect March 4. The Ore.
-based company had hoped to find a ButIn April, a bankruptcy judgre approved the liquidation of the Joe’s stores afteer the company could not find a Joe’s had 31 Northwest storesx — 10 of them in Snohomish, King and Piercre counties — that held going-out-of-business sales after the company’s assetxs were snapped up at bargain basement prices by , a liquidator that also sold off merchandise for Circuiy City.