Eddie Bauer files for bankruptcy protection

The retail industry has been in turmoil with chains such as Mervyn's, Steve & Barry's, Goody's and Gottschalk's filing for bankruptcy in the recent past. Now Eddie Bauer, a chain with 371 stores, joins the list by filing for Chapter 11 protection in Delaware. The company has been struggling to repay its debt due to a decline in its sales on account of economic downturn. Its cost-cutting and restructuring initiatives couldn't prevent bankruptcy. "Eddie Bauer is a good company with a great brand and a bad balance sheet," said Neil Fiske, the company's chief executive. Eddie Bauer plans to sell itself to CCMP Capital Advisors, a private equity firm for $202 million. CCMP Capital Advisors has said it does not want to strip the company's assets. "We're not looking to liquidate the company or close most of the stores," said Jonathan Lynch, a CCMP managing director. "We're trying to help 8,000 employees save an iconic American brand." The company will continue with its operations pe
nding court's approval for the sale.