Late last week, business casual clothing retailer Eddie Bauer has officially filed for bankruptcy and a private equity firm immediately stepped in to acquire this once-retail giant for a staggering $202 million.
CCMP Capital Advisors will be purchasing the assets of the company for the aforementioned amount. This will proceed subject to the approval of the court.
Eddie Bauer Holdings voluntarily applied for bankruptcy protection last week. This was done under US Bankruptcy Code Chapter 11. The sale to CCMP is expected to officially close within two months. However, there’s a possibility that the court could award the sale to another bidder.
According to reports, Eddie Bauer will still continue with its business despite this development. The retailer asked for the court’s permission to continue paying its employees and suppliers. CCMP also expressed its plans to continue keeping most of the clothing retailer’s stores open. Most of the employees will be retained as well.
Eddie Bauer President and CEO Neil Fiske said that despite the “bad balance sheet,” the company is still a “great band.” He’s optimistic that once the global economy recovers, everything will go smoothly and that employees will be protected from layoffs.