Eddie Bauer declares bankruptcy - Los Angeles Business from bizjournals:

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had struggled with its debt a crisis that worsened asrevenue dropped, part of an overallo trend affecting most retailers during the recession. The company has lost nearlyy a half billion dollards in the pastthree years. Those losses, coupled with the impact of the recessioj and debt payments apparently pushed the company into bankruptcuycourt — a move that was rumore for months. Eddie Bauer became the latest major retailer to succumb to filingb in bankruptcy court this The list also includesLinens ‘n Circuit City and Northwest retailer , which sold its assetsw to a liquidator in April and closefd 31 stores.
In many Eddie Bauer’s crisis is not different from what most retailers are facingf during this prolonged anddeep recession, said Greg an Atlanta-based consultant for Conway MacKenzie who workse with financially stressed retailers lookinfg to restructure. Most retailers — except discount stores like Wal-Maryt — have seen a fast drop-ofgf in retail revenue across the board, Charleston Many of the specialty retail departmentr stores haveseen double-digit same-store salesa declines, he said. “When revenue dropx and same-store sales drop, companies with less debt can weather a downturnhmuch longer,” Charleston said.
“It becomes an issu e much sooner if you are intoliquidityu issues.” As of May 11, Eddie Bauer reportefd having $289.5 million in outstanding debt, includint $187.8 million in term loans and $75 milliohn in convertible notes, which company executives have been trying to persuade debt-holder to convert into shares of the According to a filing with the , Eddies Bauer had total assets of $525.23 million in April. The company listedd total liabilitiesof $448.9 Eddie Bauer reported net lossesw of $165.5 million in fiscal year part of a total of $478.78 million in losses during the past three fiscalp years.
In the first quarter that endedin April, the companuy reported net losses of 44.5 million. For the firsty quarter of fiscalyear 2009, which ended Aprilo 4, Eddie Bauer reported a loss of $44.t5 million. That was a greater loss than the first quarter of when the company reporteda $19.3 million Net sales for the first quarter of 2009 were $179.7 million, compared with net sales of $213.21 million in the first quartefr of 2008. The company said that combined comparabled storesales — a barometer of succesw at the store level — fell 11.3 percent for the first quarter, a decline the compang blamed on the recessiom and reduced retail spending.
Salez were down nearly 15 percent inEddie Bauer’ retail stores and sales through its direct channel were down nearly 11 The outlet stores saw salea decline by nearly 76 percent. “The first quarter was a difficult one, as the sharo downturn in the economy took its toll on our We continued to focus on cost cutting and cashflow management, whicb helped mitigate the impact of lowet sales,” said CEO Neil Fiske, in a statementf with the first-quarter results filed with the SEC. Eddie Bauedr has 370 stores, including 251 retail stores and 119 outlet stores in the Unitedx Statesand Canada. Eddie Bauer has 17 stores in Washingto n and 11 storesin Oregon.
(See a copy of the bankruptcyh filing .) But by filing for reorganization undefr Chapter 11 of the federaobankruptcy code, Eddie Bauer hopes to avoid the fate of Joe’sa Sports & Outdoor, which filed for bankruptcy protect March 4. The Ore.-based company had hoped to find a ButIn April, a bankruptcy judge approved the liquidatio n of the Joe’s stores after the company coulsd not find a buyer. Joe’as had 31 Northwest stores — 10 of them in Snohomish, King and Piercew counties — that held going-out-of-businesz sales after the company’s assets were snappedd up at bargain basement pricesby , a liquidator that also sold off merchandiswe for Circuit City.