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

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The company announced that it struck an agreementr withNew York–based private equitgy firm LLC to buy Eddie Bauer’s subject to an auction and bankruptcy court CCMP Capital intends to operate the business as a going concern with littl e or no long-term debt. According to Eddies Bauer, CCMP Capital has agreed to keep a majoritg of the 371 stores open and retain a majoritgy ofthe employees. CCMP Capital specializes in buyouts and lookes for investment opportunities in retaipl andother sectors, and have made investments in the outdoore specialty retailer Cabela’s, which sells fishing and camping gear.
Eddie Bauer said it hopes to operatre business as usual during bankruptcyt court proceedings and has asked for court approval to continue paying vendorxand workers. The company also said it intendxs to honor customer gift returns and loyalty program The company also announced that it has secured a commitment from its existing revolvingcreditf lenders, Bank of America, N.A., and /Busines s Credit, Inc. for so-called debtor-in-possession financing of $90 million on an interi m basisand $100 million based on the finakl court order. The move, the company said, should providew it with ample cash flow to continuw payingits bills.
“Eddie Bauer is a good compant with a great brand and a bad balance This process will alloqw the business to emerge with far less positioned for growth as the economy recovers and as our new productasgain traction,” said Neil Fiske, Eddie Bauee president and chief executive officer, in a “We expect this process to be completedf very quickly, protecting our employees and criticalp vendor partners every step of the way. “We have made good progress on our turnaroundf strategy of returning Eddie Baued to its heritage as an active outdoo brand and have exciting new product launches on the way to includingFirst Ascent, our return to expedition-grade outerwead and gear.
Unfortunately, a crushinb debt burden placed on the compant from the Spiegel reorganization in combined withthe severe, prolonged recession, have left us with no choicse but to use this process to reduce the debt load on the