Toronto (Rajeev Sharma|): — The future of Eddie Bauer’s retail presence in Canada is uncertain as the outdoor apparel brand looks for a buyer after filing for bankruptcy protection in the United States.
The company announced Monday that it is seeking a purchaser for its network of roughly 220 stores across North America. A similar creditor protection filing is expected soon in Canada, where the retailer currently operates 31 locations, most of them in Ontario.
Eddie Bauer LLC said stores in both countries will remain open for now, but clearance and liquidation sales will take place while court proceedings move forward and the company searches for potential buyers.
If no buyer emerges, parent company Catalyst Brands plans to gradually wind down Eddie Bauer’s operations in Canada and the United States.
Catalyst Brands was created last year through the merger of U.S. department store chain JCPenney and retail holding firm SPARC Group, which acquired the Eddie Bauer brand in 2021.
Chief executive Marc Rosen said the retailer had already been facing significant difficulties prior to the merger, including declining sales and ongoing supply chain disruptions. He noted that the situation worsened over the past year due to rising operating costs linked to inflation, tariff uncertainty and broader economic pressures.
While the company made efforts to strengthen product development and marketing, Rosen said those improvements came too late to overcome long-standing challenges.
Founded in 1920 in Seattle, Eddie Bauer built its reputation as a trusted outdoor outfitter, supplying gear for adventurers and even military personnel. However, in recent years the brand has struggled to compete with stronger outdoor labels such as Patagonia and The North Face. The company has previously sought creditor protection twice.
In Canada, Eddie Bauer maintains a smaller footprint compared with the U.S., with 15 stores in Ontario, six each in Alberta and British Columbia, and single locations in Manitoba, New Brunswick, Nova Scotia and Saskatchewan. Some outlets began offering discounts of up to 60 per cent last week.
Court filings in the United States indicate that upcoming legal proceedings in Canada will be designed to safeguard the company’s assets and ensure any cross-border sale agreement is enforceable.
Operations outside North America are not affected by the bankruptcy process, as those stores are run by independent licensees. The company’s e-commerce and wholesale businesses will also continue, since they are owned by Authentic Brands Group subsidiary Outdoor 5, which retains the rights to license the Eddie Bauer brand.
