Eddie Bauer cancels auction, offers NJ retail leases

The basics:

• Eddie Bauer canceled its March 6 retail auction due to lack of bidders
• 5 New Jersey retail leases now available at high-traffic locations
• RCS Real Estate Advisors manages Eddie Bauer’s real estate and markets 174 U.S. store leases.

Immediately after its Feb. 9 petition in U.S. Bankruptcy Court for the District of New Jersey, operator Eddie Bauer LLC began going-out-of-business sales at its stores in the U.S. and Canada.

The company also said it would pursue a court-supervised sale process that could result in halting liquidation sales and keeping its 175 outposts open.

The brand canceled an auction for its retail operations, scheduled for March 6, due to lack of interest, according to documents filed in court. Eddie Bauer LLC said it could not find a satisfactory bidder for its assets by a March 3 deadline.

As a result, the entity said it’ll continue with store-closing sales “unless and until a more value-maximizing transaction becomes available,” the notice said.

A spokesperson for Eddie Bauer LLC declined to comment beyond the court filing.

After entering into a restructuring pact with secured lenders, Eddie Bauer expects to continue paying employee wages and benefits. It also aims to honor post-petition obligations to vendors and partners while the process plays out.

The company has a court-approved deadline of March 12 to secure a buyer. Otherwise, a full wind-down of North American retail locations will proceed.

Eddie Bauer LLC is a division of retail holding company Catalyst Brands that holds the license to operate Eddie Bauer stores in the U.S. and Canada. The company began 2026 with about 220 locations, but Retail Dive reported that some leases recently lapsed.

According to Bloomberg, customers have until March 12 to use any outstanding gift cards or redeem rewards points. All sales are final and no exchanges or returns will be accepted.

Within New Jersey, Eddie Bauer has six stores: Blackwood, Bridgewater, East Rutherford, Paramus, Rockaway and Tinton Falls.

In a notice filed with the state Department of Labor & Workforce Development, the company expects to lay off 58 workers across the state by May 15.

Founded 106 years ago as a small sports shop in Seattle, Eddie Bauer is known for performance outerwear, apparel, footwear and accessories.

This marks the third time that Eddie Bauer has filed for bankruptcy. In seeking Chapter 11 in 2003 and 2009, the chain pointed to broader financial and industry headwinds, The New York Times noted.

In its latest filing, Eddie Bauer’s retail operator cited declining sales, supply chain challenges, tariffs and inflation.

The motion does not affect Eddie Bauer’s manufacturing, wholesale or e-commerce operations, nor does it impact retail operations outside of the U.S. and Canada, a company spokesperson recently confirmed to NJBIZ.

Authentic Brands Group owns the intellectual property associated with the brand. In January, the company announced a transition of the licenses for Eddie Bauer’s manufacturing, e-commerce and wholesale operations in the U.S. and Canada from Catalyst to Outdoor 5. The transition was complete as of Feb. 2.

NJBIZ Managing Editor Jessica Perry also contributed to this report.