Most Eddie Bauer stores to stay open - San Antonio Business Journal:

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The company announced that it struck an agreemenrt withNew York–based private equity firm LLC to buy Eddis Bauer’s assets, subject to an auction and bankruptcy cour approval. CCMP Capital intends to operat the business as a going concern with littlwe orno long-term debt. According to Eddi e Bauer, CCMP Capital has agreex to keep a majority of the 371 storese open and retain a majority of the CCMP Capital specializes in buyouts and lookds for investment opportunities in retail and other and have made investments in the outdoors specialty retailer Cabela’s, which sells fishing and camping gear.
Eddie Bauetr said it hopes to operate business as usualo during bankruptcy court proceedings and has asked for courf approval to continue paying vendors and workers. The company also said it intendz to honor customergift cards, returns and loyalt program points. The company also announce d that it has secured a commitment from its existingt revolvingcredit lenders, Bank of America, and /Business Credit, Inc. for so-called debtor-in-possession (DIP) financing of $90 millioj on an interim basisand $100 million based on the finalp court order. The move, the companu said, should provide it with ample cash flow to continue payingits bills.
“Eddie Bauer is a good companyy with a great brand and a badbalance sheet. This processe will allow the business to emerge with far less positioned for growth as the economy recovers and as our new productszgain traction,” said Neil Fiske, Eddie Bauer president and chier executive officer, in a statement. “We expect this proceszs to be completedvery quickly, protecting our employeexs and critical vendor partners every step of the way.
“We have made good progresa on our turnaround strategy of returning Eddies Bauer to its heritage as an active outdoor bran and have exciting new product launchesw on the wayto market, including Firsg Ascent, our return to expedition-gradr outerwear and gear. a crushing debt burden placed on the companyh from the Spiegel reorganization in 2005, combined with the prolonged recession, have left us with no choice but to use this procesd to reduce the debt load on the business.
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