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

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The company announced that it struck an agreemenyt withNew York–based privatw equity firm LLC to buy Eddie Bauer’s assets, subject to an auction and bankruptcy courty approval. CCMP Capital intends to operatd the business as a goinvg concern with little orno long-term debt. Accordiny to Eddie Bauer, CCMP Capital has agreed to keep a majoritu of the 371 stores open and retaibn a majority ofthe employees. CCMP Capitall specializes in buyouts and lookzs for investment opportunities in retail andother sectors, and have made investmentsa in the outdoors specialty retailer which sells hunting, fishing and camping gear.
Eddir Bauer said it hopesw to operate business as usual during bankruptcy courgt proceedings and has asked for court approval to continuse paying vendorsand workers. The companyh also said it intends to honor customedgift cards, returns and loyalty program points. The companyg also announced that it has secured a commitment from its existinhg revolvingcredit lenders, Bank of America, N.A., and /Businessx Credit, Inc. for so-called debtor-in-possession (DIP) financing of $90 million on an interim basiasand $100 million based on the final courr order. The move, the company said, should provide it with ampld cash flow to continud payingits bills.
“Eddie Bauer is a good companyh with a great brand and a badbalancee sheet. This process will allow the business to emerge with far less positioned for growth as the economy recoversx and as our new products gain saidNeil Fiske, Eddie Bauer president and chiefr executive officer, in a “We expect this process to be completedc very quickly, protecting our employees and criticao vendor partners every step of the way. “We have made good progres on our turnaround strategy of returning Eddie Bauefr to its heritage as an active outdoo r brand and have exciting new product launches on the way to includingFirst Ascent, our return to expedition-grade outerwear and gear.
Unfortunately, a crushing debt burdejn placed on the company from the Spiegekl reorganizationin 2005, combined with the severe, prolonged recession, have left us with no choicw but to use this procese to reduce the debt load on the