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

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The company announced that it struck an agreemeny withNew York–based private equituy firm LLC to buy Eddie Bauer’xs assets, subject to an auction and bankruptcg court approval. CCMP Capital intends to operatew the business as a goinbg concern with little orno long-term debt. According to Eddi Bauer, CCMP Capital has agreed to keep a majority of the 371 storesz open and retain a majority of the CCMP Capital specializes in buyout s and looks for investment opportunities in retai l andother sectors, and have made investments in the outdoorsw specialty retailer Cabela’s, which sellsx hunting, fishing and camping gear.
Eddie Bauer said it hopee to operate business as usual during bankruptct court proceedings and has asked for court approval to continue paying vendorsand workers. The companyy also said it intends to honotr customergift cards, returns and loyaltyg program points. The compan also announced that it has secured a commitment from its existingh revolvingcredit lenders, Bank of N.A., and /Business Credit, Inc. for so-called debtor-in-possessionj (DIP) financing of $90 million on an interim basisand $100 milliohn based on the final court order. The the company said, should provide it with ample cash flow to continu e payingits bills.
“Eddie Bauer is a good company with a greatt brand and a badbalanc sheet. This process will allow the business to emerge with far less positioned for growth as the economy recovers and as our new products gain saidNeil Fiske, Eddie Bauer president and chief executive officer, in a statement. “We expecy this process to be completecdvery quickly, protecting our employees and critical vendore partners every step of the way.
“Ww have made good progress on our turnaround strategy of returninyg Eddie Bauer to its heritage as an active outdoor brand and have exciting new product launchews on the wayto market, including Firstg Ascent, our return to expedition-grade outerwear and gear. a crushing debt burden placed on the compan y from the Spiegel reorganizationin 2005, combined with the prolonged recession, have left us with no choice but to use this process to reduce the debt load on the