Born to be Wild
Eddie Bauer, the outdoor retailer that’s been fueling your adventurous side since 1920, might be waving the white flag.
The company has hired investment banks to assist with debt relief on a $225 million term loan (due in 2019) and a $200 million revolving credit line (due in 2020)—and possibly a sale.
For the Washington-based 370-store brand, liquidity has remained a question since raising the money at the beginning of 2014.
Bauer’s no stranger to shake-ups
The retail clothing brand has been passed around more times than a bottle of Cuervo on Cinco de Mayo.
In 1968, Bauer first sold the retail brand to William Niemi and son for $1.5 million—Niemi expanded operations into San Francisco, but quickly parted ways.
Niemi then sold the brand to General Mills (-0.11%) , which shifted the brand’s focus towards casual clothing and boosted sales to $250 million by 1988.
By then, American direct marketing company Spiegel Catalog wanted a shot at the action. It purchased Bauer for $260 million.
Take a deep breath, we’re almost through this.
Come 2003, in an announcement that came as a complete shock to absolutely no one, the catalog business failed, Spiegel filed for bankruptcy and Eddie Bauer was once again up for sale.
In 2009, Bauer filed for Chapter 11 (remember: that’s a fancy term for court-backed bankruptcy protection).
Don’t worry though, Golden Gate Capital saved the day for a clean $286 million.
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AND FINALLY we make it to 2017
…where once again, Bauer might put itself on the auction block. Eddie Bauer has no intention of restructuring its massive pileup of IOUs.
So here’s the gameplan: figure out a way to shave off some of this debt or start dusting off the “For Sale” signs.
E-commerce: ∞
Retail industry: 0
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