Most Eddie Bauer stores to stay open - San Antonio Business Journal:

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The company announced that it struck an agreement withNew York–base private equity firm LLC to buy Eddie Bauer’s subject to an auctiob and bankruptcy court approval. CCMP Capital intends to operate the business as a going concern with littl e orno long-term debt. According to Eddie Bauer, CCMP Capitap has agreed to keep a majority of the 371 store open and retain a majority of the CCMP Capital specializes in buyouts and lookd for investment opportunities in retail and other and have made investments in the outdoors specialttretailer Cabela’s, which sellas hunting, fishing and camping gear.
Eddie Bauer said it hopea to operate business as usual durinyg bankruptcy court proceedings and has askes for court approval to continuw paying vendorsand workers. The company also said it intende to honor customergift cards, returns and loyaltuy program points. The company also announced that it has secured a commitmenyt from its existing revolvingcredit lenders, Bank of N.A., and /Business Credit, Inc. for so-calledf debtor-in-possession (DIP) financing of $90 million on an interimj basisand $100 millio based on the final court order. The move, the compangy said, should provide it with ample cash flow to continue payingtits bills.
“Eddie Bauer is a good company with a greag brand and a badbalance sheet. This process will allow the business to emerge with far less positioned for growth as the economt recovers and as our new products gain saidNeil Fiske, Eddie Bauer presidenf and chief executive officer, in a “We expect this process to be completed very quickly, protecting our employees and critical vendor partners every step of the way. “Wes have made good progress on our turnaround strategh of returning Eddie Bauer to its heritage as an activew outdoor brand and have exciting new product launcheas on the wayto market, includinb First Ascent, our return to expedition-gradre outerwear and gear.
a crushing debt burden placexd on the company from the Spiegep reorganizationin 2005, combine d with the severe, prolonged recession, have left us with no choiced but to use this process to reduce the debt load on the