A century after outfitting the first American ascent of Mt Everest, the retail arm of Eddie Bauer LLC has filed for Chapter 11 bankruptcy protection in the District of New Jersey as of February 9, 2026. Involving over $1 billion in debt, the filing marks a critical bifurcation of the brand: while the 180+ physical stores in the US and Canada begin liquidation sales, the Eddie Bauer intellectual property and digital operations remain shielded under Authentic Brands Group (ABG) and its licensee, Outdoor 5 LLC.
Strategic wind-down amid margin compression
The bankruptcy follows a challenging fiscal period where the ‘gorpcore’ fashion trend failed to offset rising operational overheads. According to Marc Rosen, CEO, Catalyst Brands (the joint venture managing the retail footprint), high inflation and ‘ongoing tariff uncertainty’ exacerbated a structural decline in mall-based traffic. While the global outdoor clothing market is projected to reach $20.95 billion by year-end, legacy retailers like Eddie Bauer have struggled to match the technical prestige of rivals like Arc’teryx, which saw double-digit growth in 2025.
Transitioning to a digital-first ‘Harvest’ model
The restructuring aims for a ‘going-concern’ sale by March 12, 2026, though analysts suggest a full transition to an e-commerce and wholesale-only model is the most probable outcome. By separating the high-cost physical stores from the profitable IP, ABG continues its ‘capital-light’ strategy. This shift mirrors a broader 2026 retail trend where established brands sacrifice their storefront legacy to preserve brand equity in the digital and multi-brand wholesale space.
Founded in 1920 in Seattle, Eddie Bauer pioneered the quilted down jacket. Today, Authentic Brands Group owns the IP, while Catalyst Brands (a JCPenney/SPARC JV) operates the retail stores. It focuses on outdoor lifestyle apparel across North American and German markets.
Following the 2026 Chapter 11 filing, the brand is transitioning to a digital-first wholesale model. By offloading roughly 180 underperforming physical locations, the brand aims to return to profitability by leveraging high-margin licensing fees and e-commerce through partner Outdoor 5 LLC.
