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Updated at 1:09 p.m. March 6, 2026: An auction for Eddie Bauer‘s store operations scheduled for March 6 was canceled due to lack of interest, according to bankruptcy court documents filed this week. Stay tuned to NJBIZ for more coverage, and read the original story, published Feb. 10, below:

Background:

• Eddie Bauer store operator files for Chapter 11 bankruptcy protection
• Liquidation sales underway at 220+ US, Canada stores
• Court-supervised sale could halt closures if buyer emerges
• Six New Jersey stores impacted; layoffs planned by May

After filing for Chapter 11 bankruptcy protection, the company that runs Eddie Bauer stores in the U.S. and Canada is kicking off liquidation sales.

According to a Feb. 9 petition filed in U.S. Bankruptcy Court for the District of New Jersey, operator Eddie Bauer LLC said it began going-out-of-business sales at its 220-plus remaining stores.

However, the company also said it is pursuing a court-supervised sale process that could result in halting liquidation sales and keeping outposts open.

Eddie Bauer LLC is a division of retail holding company Catalyst Brands, according to Business Insider.

After entering into a restructuring pact with secured lenders, Eddie Bauer expects to continue paying employee wages and benefits. It also aims to honor post-petition obligations to vendors and partners while the process plays out. According to the filing, Eddie Bauer has a court-approved deadline of March 12 to secure a buyer for North American retail operations. Otherwise, a full wind-down will proceed.

NJ layoffs

Within New Jersey, Eddie Bauer has six stores: Blackwood, Bridgewater, East Rutherford, Paramus, Rockaway and Tinton Falls.

According to a notice filed with the New Jersey Department of Labor & Workforce Development, the company has slated layoffs by May 15 impacting 58 workers across the state.

Founded 106 years ago as a small sports shop in Seattle, Eddie Bauer is known for performance outerwear, apparel, footwear and accessories.

The Chapter 11 filing does not affect Eddie Bauer’s manufacturing, wholesale or e-commerce operations, nor does it impact retail operations outside of the U.S. and Canada, a company spokesperson told NJBIZ.

In January, Authentic Brands Group – which owns the intellectual property associated with the brand – announced it was transitioning the licenses for Eddie Bauer’s manufacturing, e-commerce and wholesale operations in the U.S. and Canada from Catalyst to Outdoor 5. The transition was complete as of Feb. 2.

‘Challenged situation’

Eddie Bauer previously sought bankruptcy twice. In seeking Chapter 11 in 2003 and 2009, the chain pointed to broader financial and industry headwinds, The New York Times noted. In its court filing, Eddie Bauer’s retail operator cited declining sales, supply chain woes, tariffs and inflation. It lists estimated assets of $100 million to $500 million and estimated liabilities of $1 billion to $10 billion.

Catalyst Brands formed in 2025 through the merger of JCPenney and SPARC Group. It now operates a portfolio of retail brands including Aéropostale, Brooks Brothers, Lucky Brand and Nautica alongside JCPenney itself.

Catalyst Brands CEO Marc Rosen said, “Even prior to the inception of Catalyst Brands last year, the Retail Company was in a challenged situation, with declining sales, supply chain challenges and other issues.”

“Over the past year, these challenges have been exacerbated by various headwinds, including increased costs of doing business due to inflation, ongoing tariff uncertainty, and other factors. While the leadership team at Catalyst was able to make significant strides in the brand, including rapid improvements in product development and marketing, those changes could not be implemented fast enough to fully address the challenges created over several years,” he said.

Rosen added, “This is not an easy decision, and we are grateful to the Retail Company’s associates and customers for their loyalty and trust. We are working to minimize the impact on the retail company’s employees, vendors, customers and other stakeholders. However, this restructuring is the best way to optimize value for the retail company’s stakeholders and also ensure Catalyst Brands remains profitable and with strong liquidity and cashflow.”

Editor’s note: This story was updated at 5:37 p.m. Feb. 10, 2026, to clarify company ownership as well as Catalyst Brands’ role across brands. The story was further updated at 11:07 a.m. Feb. 11, 2026, to clarify the license holders.