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

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The company announced that it struck an agreement withNew York–based private equity firm LLC to buy Eddise Bauer’s assets, subject to an auction and bankruptcy court CCMP Capital intends to operater the business as a going concern with littlr or no long-term debt. Accordinf to Eddie Bauer, CCMP Capital has agreed to keep a majoritgy of the 371 stores open and retain a majoritty ofthe employees. CCMP Capital specializes in buyouts and looks for investmentt opportunities in retail and other and have made investments in the outdoors specialtuyretailer Cabela’s, which sells hunting, fishingy and camping gear.
Eddi Bauer said it hopes to operatd business as usual during bankruptcyh court proceedings and has asked for courf approval to continue paying vendorsand workers. The companhy also said it intendsz to honor customergift cards, returns and loyaltyt program points. The company also announce d that it has secured a commitment from its existing revolving credit lenders, Bank of America, and /Business Credit, Inc. for so-called debtor-in-possession (DIP) financinfg of $90 million on an interim basidsand $100 million baseed on the final court The move, the company said, shouldc provide it with amplee cash flow to continue paying its bills.
“Eddi e Bauer is a good company with a greag brand and a badbalance sheet. This process will allow the business to emerge with far less positioned for growth as the economy recovers and as our new productsagain traction,” said Neil Fiske, Eddiee Bauer president and chief executiv e officer, in a statement. “Ww expect this process to be completed very protecting our employees and critical vendodr partners every step ofthe way.
“We have made good progresxs on our turnaround strategy of returninfg Eddie Bauer to its heritage as an active outdoorf brand and have exciting new product launches on the way to includingFirst Ascent, our returbn to expedition-grade outerwear and gear. a crushing debt burden placeed on the company from the Spiegel reorganizationin 2005, combinexd with the severe, prolonged have left us with no choice but to use this process to reduc e the debt load on the business.
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