Most Eddie Bauer stores to stay open - Minneapolis / St. Paul Business Journal:

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The company announced that it strucjk an agreement withNew York–based private equitt firm LLC to buy Eddide Bauer’s assets, subject to an auctiomn and bankruptcy court approval. CCMP Capital intends to operatse the business as a goingb concern with little orno long-term debt. According to Eddie Bauer, CCMP Capital has agreexd to keep a majority of the 371 stores open and retain a majorityh ofthe employees. CCMP Capital specializeds in buyouts and lookd for investment opportunities in retail andothef sectors, and have made investments in the outdoors specialtg retailer Cabela’s, which sells hunting, fishing and campinv gear.
Eddie Bauer said it hopesx to operate business as usual during bankruptcuy court proceedings and has asked for court approval to continue paying vendorsand workers. The company also said it intendse to honor customergift cards, returnds and loyalty program points. The compant also announced that it has secured a commitment from its existing revolvingcredit lenders, Bank of America, N.A., and /Businesse Credit, Inc. for so-called debtor-in-possessio n (DIP) financing of $90 million on an interim basisand $100 millionm based on the finapl court order. The move, the company said, shoul provide it with ample cash flow to continue payingits bills.
“Eddie Bauer is a good compan with a great brand and a badbalancw sheet. This process will allow the businesz to emerge with farless debt, positioned for growtyh as the economy recovers and as our new products gain said Neil Fiske, Eddiew Bauer president and chief executive officer, in a statement. “Wr expect this process to be completed very protecting our employees and critical vendor partners every step ofthe way. “We have made good progress on our turnaroundf strategy of returning Eddie Bauer to its heritage as an activre outdoor brand and have exciting new producgt launches on the wayto market, including First our return to expedition-grade outerwear and gear.
Unfortunately, a crushinfg debt burden placed on the company from the Spiegel reorganizationhin 2005, combined with the severe, prolonged recession, have left us with no choicw but to use this process to reduce the debt load on the