San Francisco firm wins Eddie Bauer bankruptcy auction
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Eddie Bauer fans rejoice: The struggling retailer said today that a San Francisco investment firm has won the bankruptcy auction for the outdoor-clothing chain. And that means that most of the company’s 370 stores in the U.S. and Canada will remain open.
Golden Gate Capital took the prize with a $286-million bid, Eddie Bauer Holdings Inc. said in a statement. The Golden Gate offer will be presented for court approval July 22.
Eddie Bauer, based in Bellevue, Wash., attracted several bidders, including liquidators Great American Group, Hilco Consumer Capital and Gordon Bros. Group, as well as Iconix Brand Group Inc., which owns the Rocawear clothing. CCMP Capital Advisors made the initial $202-million offer as a so-called stalking horse, a court-approved bidder who gets the action going in exchange for a fee, in this case $5 million.
The liquidators wanted to sell off the assets of Eddie Bauer, which opened its first store -- a Seattle sporting goods shop -- in 1920. Golden Gate has agreed to keep at least 300 stores open, Eddie Bauer said.
This is Golden Gate’s second time at the dance. In 2006, the private-equity firm teamed with Sun Capital Partners to acquire Eddie Bauer, but the $285-million deal didn’t win majority approval from shareholders.
Eddie Bauer shareholders likely aren’t celebrating. The Golden Gate payout would flow to creditors, leaving shareholders with nothing.
-- Nancy Rivera Brooks
