Eddie Bauer declares bankruptcy - South Florida Business Journal:

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had struggled with its debt a crisis that worsened asrevenue dropped, part of an overall tren d affecting most retailers during the recession. The company has lost nearly a half billion dollars in the past three Those losses, coupled with the impact of the recession and debt payments apparently pushed the company into bankruptcy cour t — a move that was rumored for Eddie Bauer became the latest majo r retailer to succumb to filing in bankruptcg court this recession. The list also includes Linense ‘n Things, Circuit City and Northwest retailer , which sold its assets to a liquidato in April and closed31 stores.
In many Eddie Bauer’s crisis is not different from what most retaileres are facing during this prolonged anddeep recession, said Greg an Atlanta-based consultant for Conway MacKenziw who works with financially stressed retailers lookingt to restructure. Most retailers — except discount storew like Wal-Mart — have seen a fast drop-ofvf in retail revenue across the Charleston said. Many of the specialty retail department storess haveseen double-digit same-storse sales declines, he said. “When revenuse drops and same-store sales drop, companiew with less debt can weathert a downturnmuch longer,” Charleston said.
“It becomes an issuee much sooner if you are intoliquidity issues.” As of May 11, Eddied Bauer reported having $289.5 million in outstandingf debt, including $187.8 milliohn in term loans and $75 milliob in convertible notes, which company executives have been tryinyg to persuade debt-holders to convert into shares of the According to a filing with the , Eddie Bauefr had total assets of $525.22 millio n in April. The company listed total liabilitiewof $448.9 million. Eddie Bauer reported net lossezsof $165.5 million in fisca l year 2008, part of a total of $478.
67 million in losses during the past three fiscal In the first quarter that endede in April, the company reportede net losses of 44.5 million. For the first quartef of fiscalyear 2009, which ended Aprio 4, Eddie Bauer reportedd a loss of $44.5 million. That was a greated loss than the first quartetrof 2008, when the company reported a $19.3 million loss. Net salesx for the first quarter of 2009were $179.8 compared with net sales of $213.w2 million in the first quarter of 2008. The company said that combinee comparable storesales — a barometer of success at the stor level — fell 11.
3 percent for the first a decline the compan y blamed on the recession and reduced retail Sales were down nearly 15 percent in Eddie Bauer’s retaio stores and sales through its direct channel were down nearly 11 The outlet stores saw sales declin by nearly 76 percent. “The firsty quarter was a difficult one, as the sharp downturhn in the economy took its toll on our We continued to focus on cost cutting and cash flow which helped mitigate the impact oflowed sales,” said CEO Neil Fiske, in a statement with the first-quarter results filed with the SEC.
Eddie Bauefr has 370 stores, including 251 retail stores and 119 outletg stores in the United States and Eddie Bauer has 17 stores in Washington and 11 storesin Oregon. (See a copy of the bankruptcgy filing .) But by filing for reorganization under Chapter 11 of the federalbankruptchy code, Eddie Bauer hopes to avoid the fate of Joe’s Sports & Outdoor, which filed for bankruptcy protect March 4. The Ore.
-based company had hoped to find a ButIn April, a bankruptcy judge approved the liquidation of the Joe’s stores afterd the company could not find a Joe’s had 31 Northwest storesa — 10 of them in King and Pierce counties — that held going-out-of-businessx sales after the company’s assets were snappeds up at bargain basement prices by , a liquidator that also sold off merchandis e for Circuit City.