Eddie Bauer to file for bankruptcy and close its North American stores

Outdoor apparel retailer Eddie Bauer is expected to shutter its North American stores as its retail operator prepares to file for bankruptcy protection.

Catalyst Brands, the entity that holds the rights to operate Eddie Bauer’s brick-and-mortar locations, will file the petition, according to Women’s Wear Daily. The move affects more than 200 stores across the region.

Locations outside of North America will not be impacted by the proceedings. The company’s manufacturing, wholesale, and e-commerce divisions are also expected to continue normal operations.

Multiple parties are reportedly expected to bid for the rights to operate some or all of the retail locations. A successful bidder could potentially license the rights from Authentic Brands Group to keep the storefronts open.

Founded by the inventor of the quilted down jacket in 1940, Eddie Bauer previously filed for bankruptcy in 2003 and 2009.

The filing comes amid a turbulent start for traditional retail in 2026. Last month, Saks Global—the parent company of luxury chains Saks Fifth Avenue and Neiman Marcus—also filed for bankruptcy protection.

Eddie Bauer’s precarious slide toward its third bankruptcy filing is more than an isolated corporate failure; it is a stark symptom of a systemic crisis eroding the foundations of traditional American retail. Following closely on the heels of Saks Global’s own insolvency, the distress signals are now vibrating across the entire market spectrum, from mid-tier outdoor performance gear to the heights of luxury fashion.

The Eddie Bauer restructuring highlights a critical evolution in retail business architecture: the decoupling of brand equity from operational liability. Under its current structure, Authentic Brands Group (ABG) holds the intellectual property, while Catalyst Brands manages the physical storefronts. This "asset-light" licensing model is designed to insulate the brand’s value, allowing it to generate revenue through wholesale and e-commerce even as its brick-and-mortar footprint collapses. The reported interest from multiple bidders suggests that while the "Eddie Bauer" name remains a potent asset, the mall-dependent distribution model it once relied upon is effectively obsolete.

The decline of such "anchor tenants" creates a profound domino effect for the broader commercial real estate sector. As these major brands retreat, the resulting loss of foot traffic threatens the viability of the smaller peripheral businesses that populate American shopping centers.

Ultimately, the path forward for legacy retail lies in a radical shift away from expansive physical footprints. Survival now dictates a lean, omnichannel approach: a pivot toward a limited number of high-impact "experiential" locations integrated with a dominant digital platform. In this increasingly hostile environment, the transition is no longer a strategic choice, but an existential necessity.

While the Eddie Bauer bankruptcy may not have a direct impact, the broader decline of the American shopping mall creates a significant ripple effect for Vietnamese-American small businesses. Many of our community’s nail salons, food court phở restaurants, and niche retail shops are strategically located within or adjacent to these major shopping centers. When a major anchor store like Eddie Bauer closes, the resulting drop in foot traffic creates a challenging environment for the surrounding businesses that many families in Little Saigon and beyond depend on.