Eddie Bauer Holdings Inc. has filed for Chapter 11 bankruptcy protection due to overwhelming debt.
The nearly 90-year-old outdoor retailer has agreed to sell its assets to CCMP Capital Advisors LLC., a private equity firm, for $202 million in cash. The investor plans to preserve most of Eddie Bauer's employees and continue to run most of its 371 stores.
Eddie Bauer became the latest retail chain destroyed by the current financial crisis. In its most recent quarter, the company had a net loss of $44.5 million and had $187.9 million in long-term debt.
CCMP has experience in retail investments. Its other holdings include the Quizno's sandwich chain and 1-800-flowers.com. They also helped turn around Burger King Holdings Inc. and Continental Airlines Inc..