Hey Legal,Watching ebhi also.Vague as usual.Need to know if liquidation or re-structure during bk.World of difference. Eddie Bauer Files For Chapter 11 Bankruptcy Protection
Last update: 6/17/2009 1:45:26 PM
By Rachel Feintzeig
Of DOW JONES DAILY BANKRUPTCY REVIEW
Retailer Eddie Bauer Holdings Inc. (EBHI) sought Chapter 11 bankruptcy protection Wednesday with plans to sell its assets.
The Bellevue, Wash., company said its board of directors had agreed to pursue a sale of its assets to an entity known as Rainier Holdings LLC at a special meeting held Tuesday.
The Wall Street Journal reported earlier Wednesday that the buyer behind the purchasing vehicle is private-equity firm CCMP Capital Advisors LLC.
In papers filed with the U.S. Bankruptcy Court in Wilmington, Del., Eddie Bauer blamed a heavy debt load, "liquidity constraints" and fear that vendors may cut off the flow of the company's merchandise into its stores for its Chapter 11 filing. It also said it was concerned that it would not be able to comply with the covenants of its $225 million senior term loan, and that it had failed to refinance its existing debt.
The company listed assets of $476 million and total liabilities of $426.7 million in its Chapter 11 petition.
The company indicated that it will seek a bankruptcy loan from a group of lenders led by Bank of America (BAC).
This is Eddie Bauer's second trip to bankruptcy court. Its former owner, Spiegel Inc., sought bankruptcy protection in 2003, after leading Eddie Bauer away from its mountaineering gear-roots and into the market for casual women's wear. Recently, the company said it was turning its concentration back to tents, backpacks and parkas.
(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection.)
-By Rachel Feintzeig, Dow Jones Daily Bankruptcy Review; 202-862-1358;
rachel.feintzeig@dowjones.com
(END) Dow Jones Newswires
