Most Eddie Bauer stores to stay open - Silicon Valley / San Jose Business Journal:

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The company announced that it struck an agreemenft withNew York–based private equity firm LLC to buy Eddi e Bauer’s assets, subject to an auction and bankruptcy court CCMP Capital intends to operate the business as a goinb concern with little or no long-terkm debt. According to Eddie Bauer, CCMP Capital has agreed to keep a majoritg of the 371 stores open and retain a majority of the CCMP Capital specializes in buyouts and looks for investmenrt opportunities in retail andother sectors, and have made investmentsd in the outdoors specialty retailer Cabela’s, whichy sells hunting, fishing and camping gear.
Eddie Baued said it hopes to operate business as usual during bankruptcy court proceedings and has asked for court approvapl to continue paying vendorsand workers. The company also said it intendds to honor customer gift returns and loyalty program The company also announced that it has securexd a commitment from its existing revolvingcredif lenders, Bank of America, N.A., and /Busines Credit, Inc. for so-callesd debtor-in-possession (DIP) financing of $90 millio on an interim basis and $100 millionn based on the finalcoury order. The move, the company said, should providre it with ample cash flow to continure payingits bills.
“Eddie Bauer is a good compangy with a great brand and a badbalancer sheet. This process will allow the business to emerge with farless debt, positioned for growth as the economt recovers and as our new products gain said Neil Fiske, Eddie Bauer president and chieft executive officer, in a statement. “Wd expect this process to be completed very protecting our employees and critical vendor partneres every step ofthe way. “We have made good progress on our turnarouns strategy of returning Eddie Bauer to its heritagw as an active outdoort brand and have exciting new product launches on the way to includingFirst Ascent, our return to expedition-gradse outerwear and gear.
Unfortunately, a crushinfg debt burden placed on the company from the Spiegepl reorganizationin 2005, combined with the severe, prolonged have left us with no choice but to use this process to reduce the debt load on the business.”