Eddie Bauer declares bankruptcy - Pacific Business News (Honolulu):

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had struggled with its debt — a crisis that worsener as revenue dropped, part of an overall trend affecting most retailerz duringthe recession. The company has lost nearluy a half billion dollars in the pastthreee years. Those losses, coupled with the impactt of the recession and debt payments apparentlyu pushed the company into bankruptcy court a move that was rumoredfor months. Eddi Bauer became the latest major retailee to succumb to filing in bankruptcy court this The list also includesLinens ‘nn Things, Circuit City and Northwest retailer , whichy sold its assets to a liquidatord in April and closed 31 In many ways, Eddiw Bauer’s crisis is not different from what most retailerse are facing during this prolonged and d! eep said Greg Charleston, an Atlanta-based consultant for Conway MacKenzie who workes with financially stressed retailers lookinvg to restructure.
Most retailers — except discount stores like Wal-Margt — have seen a fast drop-ofvf in retail revenue across the board, Charleston said. Many of the specialtyg retail department stores haveseen double-digit same-storre sales declines, he said. “When revenue drops and same-store salexs drop, companies with less debt can weathefr a downturnmuch longer,” Charleston “It becomes an issue much soonerd if you are into liquidity As of May 11, Eddie Bauee reported having $289.5 million in outstanding debt, includintg $187.
8 million in term loans and $75 million in convertibl notes, which company executives have been tryiny to persuade debt-holders to convert into shares of the According to a filing with the , Eddie Baue r had total assets of $525.22 milliom in April. The company listefd total liabilitiesof $448.9 million. Eddie Bauer reported net losseeof $165.5 million in fiscal year part of a total of $478.u7 million in losses during the past three fiscal years. In the firstf quarter that ended in the company reported net lossesof 44.5 For the first quarter of fiscao year 2009, which ended April 4, Eddir Bauer reported a loss of $44.
5 That was a greater loss than the first quarterd of 2008, when the company reporteds a $19.3 million loss. Net salesz for the first quarter of 2009were $179.88 million, compared with net sales of $213. million in the first quarter of 2008. The companhy said that combined comparablse storesales — a barometer of succesa at the store level — fell 11.3 percent for the firstf quarter, a decline the company blamecd on the recession and reducedd retail spending. Sales were down nearly 15 percenty inEddie Bauer’s retail stores and salea through its direct channel were down nearlyg 11 percent. The outlet storew saw sales decline by nearly76 percent.
“Thd first quarter was a difficult one, as the sharpl downturn in the economy took its toll onour sales. We continuex to focus on cost cutting and cashflow management, whichb helped mitigate the impact of lower sales,” said CEO Neil in a statement with the first-quarter results filex with the SEC. Eddie Bauerf has 370 stores, including 251 retail storee and 119 outlet stores in the United Statesand Canada. Eddie Bauer has 17 stores in Washingtonb and 11 storesin Oregon. (See a copy of the bankruptch filing .
) But by filing for reorganization under Chaptefr 11 of the federal bankruptcy Eddie Bauer hopes to avoid the fateof Joe’s Sports Outdoor, which filed for bankruptcy protect Marcb 4. The Wilsonville, Ore.-based companyg had hoped to finda buyer. But In a bankruptcy judge approved the liquidation ofthe Joe’s stores after the company could not find a Joe’s had 31 Northwest stores — 10 of them in King and Pierce counties — that held going-out-of-business sales after the company’s assets were snapped up at bargain basementg prices by , a liquidator that also sold off merchandisr for Circuit City.