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

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The company announced that it struck an agreemenyt withNew York–based private equity firm LLC to buy Eddiw Bauer’s assets, subject to an auctionn and bankruptcy court CCMP Capital intends to operate the business as a going concerb with little or no long-term debt. According to Eddiee Bauer, CCMP Capital has agreed to keep a majorityg of the 371 stores open and retain a majorith ofthe employees. CCMP Capital specializes in buyoutw and looks for investment opportunities in retaill andother sectors, and have made investments in the outdoorse specialty retailer Cabela’s, which sells hunting, fishing and campingh gear.
Eddie Bauer said it hopes to operate business as usual during bankruptcy court proceedings and has askedd for court approval to continu e paying vendorsand workers. The company also said it intendsx to honor customergift cards, returns and loyaltuy program points. The company also announced that it has secureds a commitment from its existing revolvinbcredit lenders, Bank of America, N.A., and /Business Inc. for so-called debtor-in-possession (DIP) financing of $90 million on an interikm basisand $100 million based on the finall court order. The move, the company said, shoulx provide it with ample cash flow to continue payingvits bills.
“Eddie Bauer is a good companh with a great brand and a bad balance This process will allow the businessz to emerge with farless debt, positioned for growth as the economy recovers and as our new products gain said Neil Fiske, Eddiee Bauer president and chief executive officer, in a statement. “Wde 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 turnarouncd strategy of returning Eddire Bauer to its heritage as an active outdoor brancd and have exciting new producgt launches on the wayto market, includinhg First Ascent, our returnb to expedition-grade outerwear and gear. Unfortunately, a crushingb debt burden placed on the companu from the Spiegel reorganization in combined withthe severe, prolonged recession, have left us with no choice but to use this process to reduce the debt load on the