Texas-based retail operator for Eddie Bauer, Catalyst Brands is finalising a Chapter 11 bankruptcy filing intended to facilitate a complete exit from North American brick-and-mortar operations. Expected as early as February 2026, the anticipated filing aims to dissolve the lease liabilities of nearly 200 stores across the US and Canada. While liquidation sales have already commenced at several prime locations, including high-traffic sites in Minnesota and Washington, the move is being framed by industry analysts as a ‘managed retreat.’ By shedding an underperforming physical fleet, the brand’s intellectual property - owned by Authentic Brands Group - remains insulated from the operator’s insolvency, allowing for a concentrated focus on high-margin channels.
Digital resilience and global expansion
Contrary to typical liquidations, the Eddie Bauer brand is set for immediate operational continuity through an expanded partnership with Outdoor 5 (Oved). As of February 2, 2026, Outdoor 5 has assumed control of the brand’s e-commerce, design, and wholesale divisions. This technical transition effectively decouples the brand’s digital future from its physical past. While the North American retail network faces a total shutdown, Eddie Bauer’s international presence remains robust, with 20 profitable locations continuing operations in markets like Japan and Germany. We are setting the brand up for long-term, sustainable growth by meeting consumers where they are—online and through leading multi-brand retailers, stated Jarrod Weber, Global President, Authentic.
Market opportunity amid sector retrenchment
The exit of a century-old titan from the mall space signals a broader shift in the outdoor apparel sector, where rising lease costs and shifting foot traffic have made mid-market store fleets increasingly untenable. However, this creates a significant opportunity for wholesale partners. Major retailers like Dick’s Sporting Goods and Amazon are expected to absorb the displaced demand, as Eddie Bauer’s wholesale volume is projected to grow 15 per cent under the new O5 Apparel licensing structure. Although the closure of 200 stores results in significant job losses, the brand’s lean, digital-first model is designed to sustain its $1.5 billion global valuation by leveraging its 106-year heritage without the drag of legacy real estate.
Heritage outdoor innovation
Eddie Bauer is a premier outdoor outfitter specializing in technical performance outerwear and rugged casual apparel. Founded in 1920, the brand patented the first quilted down jacket. Its 2026 growth strategy prioritizes an asset-light, digital-first model, focusing on e-commerce and global wholesale while maintaining a strong international retail presence in Japan.
