Eddie Bauer LLC, the retail operator of the brand’s stores in the US and Canada, applied Chapter 11 bankruptcy protection Monday in New Jersey.

The operator cited declining sales and supply chain challenges and, more recently, ongoing inflation, tariff uncertainty and other headwinds as reasons for the filing.

It will begin liquidation sales at its 180 Eddie Bauer stores in the US and Canada, and seek a buyer for its brick-and-mortar store operation.

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Eddie Bauer LLC, the retail operator of the brand’s stores in the US and Canada. (Getty Images)

Founded in Seattle, the brand has sold outdoor sportswear for 106 years. He patented the first quilted jacket, known as the “Skyliner” in 1940.

Eddie Bauer LLC is a division of Catalyst Brands, which emerged as a new retail holding company in 2025 through a merger between JCPenney and SPARC Group.

“This is not an easy decision,” said Marc Rosen, CEO of Catalyst Brands, which owns the license to operate Eddie Bauer stores in the United States and Canada. “However, this restructuring is the best way to optimize value for the retail company’s stakeholders and also ensure that Catalyst Brands remains profitable and with strong liquidity and cash flow.”

The failed Eddie Bauer retail company is $1.7 billion in debt, according to its court filings.

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According to a news release, Eddie Bauer retail stores outside the United States and Canada are operated by other licensees and are not included in the Chapter 11 filings. The locations will remain open.

An Eddie Bauer store is seen on February 3, 2026 in Round Rock, Texas. (Brandon Bell/Getty Images)

None of Catalyst’s other brands will be affected by the filing. The bankruptcy will not affect Eddie Bauer’s manufacturing, wholesale, e-commerce operations or retail operations outside the US and Canada.

Authentic Brands Group owns the Eddie Bauer brand and IP worldwide.

“We have a clear distribution strategy focused on strengthening digital and wholesale channels while maintaining a balanced brick-and-mortar retail presence through strategic partners,” said Authentic Brands’ executive vice president. David Brooks. “This approach gives the brand greater flexibility, greater consumer access and a more capital-efficient growth path. By aligning Eddie Bauer’s channel mix with how customers choose to shop today, we are positioning the brand for long-term sustainable expansion while protecting brand integrity.”

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The bankruptcy will not affect Eddie Bauer’s manufacturing, wholesale, e-commerce or retail operations outside the United States and Canada. (Brandon Bell/Getty Images)

The company’s lenders have agreed to support the liquidation plan, with the option to pivot to a sale of the business if a buyer quickly finds itself insolvent. Eddie Bauer retail and outlet stores will remain open during the bankruptcy sales.

Eddie Bauer aims to get court approval for a potential sale by March 12, according to court documents. Eddie Bauer previously filed for bankruptcy in 2009.

Similar challenges have also pushed other clothing retailers into bankruptcy in recent months, including high-end department store conglomerate Saks Global, fast-fashion company Forever 21 and women’s clothing and accessories retailer Francesca’s.

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Reuters contributed to this report.