Most Eddie Bauer stores to stay open - Houston Business Journal:

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The company announced that it strucm an agreement withNew York–based private equity firm LLC to buy Eddiew Bauer’s assets, subject to an auction and bankruptcyu court approval. CCMP Capital intends to operatse the business as a goint concern with little orno long-term debt. According to Eddie Bauer, CCMP Capital has agreed to keep a majoritgy of the 371 stores open and retain a majority ofthe employees. CCMP Capital specializes in buyouts and lookws for investment opportunities in retail andother sectors, and have made investments in the outdoors specialty retailer Cabela’s, whicgh sells hunting, fishing and camping gear.
Eddied Bauer said it hopes to operate businesws as usual during bankruptcy court proceedinges and has asked for court approval to continuee paying vendorsand workers. The compangy also said it intends to honord customergift cards, returns and loyalty prograk points. The company also announced that it has securer a commitment from its existing revolving credit Bankof America, N.A., and /Business Inc. for so-called debtor-in-possession (DIP) financing of $90 millio on an interim basis and $100 millionm based on the finalcourt order. The move, the companyg said, should provide it with ample cash flow to continued payingits bills.
“Eddie Bauer is a good company with a greart brand and a badbalancw sheet. This process will allow the business to emerge with farless debt, positioned for growth as the economty recovers and as our new products gain said Neil Fiske, Eddie Bauer presideny and chief executive in a statement. “We expect this procesw to be completed very protecting our employees and criticall vendor partners every step ofthe way. “Wde have made good progress on our turnaround strategy of returninhg Eddie Bauer to its heritagse as an active outdoor brand and have excitinv new product launches on the wayto market, including Firsty Ascent, our return to expedition-grade outerweaf and gear.
Unfortunately, a crushing debt burden place on the company from the Spiegel reorganization in combined withthe severe, prolonged recession, have left us with no choicwe but to use this process to reduce the debt load on the business.”