Advertisement

Eddie Bauer Stores to Be Shuttered

From Bloomberg News

Spiegel Inc., owner of the 98-year-old Spiegel catalog that filed for bankruptcy protection last month, plans to close 60 of its Eddie Bauer stores, including seven in California.

The company also will eliminate 900 positions.

The stores will remain open until Spiegel receives Bankruptcy Court approval to shutter the locations, the company said. Spiegel operates 529 Eddie Bauer clothing, home and outlet stores in the U.S. and Canada.

The company called the stores slated for closure underperforming and said the closings are expected to improve fiscal 2003 financial results for the Eddie Bauer division.

Advertisement

“The decision to close stores is never easy, yet we are confident that this move will result in a healthier, more productive store base for Eddie Bauer as we eliminate the least productive stores and concentrate our efforts on boosting store productivity,” Spiegel interim Chief Executive and Chief Restructuring Officer Bill Kosturos said.

Spiegel this month said it would close 21 outlet and clearance stores that were not performing to expectations. The Downers Grove, Ill.-based company sought protection from creditors on March 17 after losing more than $727 million in the last two years.

The Eddie Bauer stores slated for closure are in 24 states and the District of Columbia.

The California apparel stores that will be closed are located at Paseo Colorado in Pasadena; Santa Monica Place; South Coast Plaza in Costa Mesa; the Shops at Mission Viejo; Horton Plaza in San Diego; 250 Post St. in San Francisco (includes Eddie Bauer Home outlet); and Downtown Plaza in Sacramento.

Advertisement

The company said its remaining Eddie Bauer apparel and home stores, including 32 others throughout California, will continue to operate.


Advertisement