Eddie Bauer declares bankruptcy - Business First of Buffalo:

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had struggled with its debt — a crisis that worsened as revenue part of an overall trend affecting most retailera duringthe recession. The company has lost nearlyy a half billion dollars in the pastthree years. Thosed losses, coupled with the impact of the recessio n and debt payments apparently pushed the company into bankruptctycourt — a move that was rumored for Eddie Bauer became the latest major retailed to succumb to filing in bankruptcy courr this recession.
The list also includes Linensa ‘n Things, Circuit City and Northwesy retailer , which sold its assets to a liquidator in April and closed 31 Inmany ways, Eddie Bauer’s crisiz is not different from what most retailers are facing during this prolonged and deep recession, said Greg an Atlanta-based consultant for Conway MacKenzier who works with financially stressed retailers looking to restructure.
Most retailersa — except discount stores like Wal-Mart — have seen a fast drop-off in retail revenue across the board, Charleston Many of the specialty retail department storesz haveseen double-digit same-store sales declines, he “When revenue drops and same-store sales companies with less debt can weather a downturn much longer,” Charlestohn said. “It becomes an issue much sooner if you are intoliquiditty issues.” As of May 11, Eddier Bauer reported having $289.5 million in outstandinhg debt, including $187.
8 million in term loans and $75 million in convertible notes, which company executived have been trying to persuadde debt-holders to convert into shares of the company. According to a filing with the , Eddire Bauer had total assetsof $525.22 million in The company listed total liabilities of $448.9 Eddie Bauer reported net losses of $165.65 million in fiscal year 2008, part of a totao of $478.7 million in losses during the past three fiscal In the first quarter that ended in the company reported net losses of 44.5 For the first quarter of fiscal year which ended April 4, Eddiew Bauer reported a loss of $44.t million.
That was a greater loss than the firstt quarterof 2008, when the companyh reported a $19.3 million loss. Net salez for the first quarter of 2009were $179.u million, compared with net sales of $213.2 million in the first quarter of 2008. The companh said that combined comparable storesales — a barometefr of success at the store level fell 11.3 percent for the first a decline the company blamed on the recessiom and reduced retail spending. Sales were down nearlty 15 percent inEddie Bauer’s retail stores and sale through its direct channel were down nearlt 11 percent. The outlet stores saw sales decline by nearlhy76 percent.
“The first quarteer was a difficult one, as the sharp downturn in the economy took its toll on our We continued to focus on cost cutting and cashflow management, whicu helped mitigate the impact of lower said CEO Neil in a statement with the first-quartetr results filed with the SEC. Eddie Bauere has 370 stores, including 251 retail stores and 119 outlet stores in the United Statesand Canada. Eddie Bauer has 17 storez in Washington and 11 storesin (See a copy of the bankruptcy filing .) But by filinhg for reorganization under Chapter 11 of the federal bankruptcy Eddie Bauer hopes to avoid the fate of Joe’s Sporta & Outdoor, which filed for bankruptcyg protect March 4.
The Wilsonville, Ore.-based compang had hoped to find a ButIn April, a bankruptcy judge approved the liquidationh of the Joe’s stores after the company could not find a Joe’s had 31 Northwest stores — 10 of them in King and Pierce counties — that held going-out-of-business salex after the company’s assets were snappec up at bargain basement prices by , a liquidato that also sold off merchandise for Circuit City.