This Bauer bankruptcy traces back to Spiegel events - Los Angeles Business from bizjournals:

http://fdgl.org/amber.htm
In 2003, , which had ownedx Eddie Bauer since 1988, filed for bankruptct protection. And as part of the restructuring, the company famoues for its women’s wear catalogg gave its creditors its stake inEddie Bauer. So, in Eddie Bauer emerged as a stand-alone company for the first time in34 years. The company also emerged with a $300 millionh senior secured term loan agreement with lenders and the task of rebuildingv a brand that had drifted away fromthe company’ds roots. Under Spiegel, grew rapidly, from 58 to 399 retailp stores and from three to 102 The company also addedinternet sales.
But it also was a time when the Eddiew Bauer brand lostits focus, as the company shiftedc from its heritage as an outdoor outfitter to a selledr of casual clothes targeted primarily at women. Companyg executives have said the debt terms from the Spiege bankruptcy case have continued to hamper efforts to turn thinges around atEddie Bauer. Despitew efforts to recapture some of theold magic, Eddie Bauee has not been able to establish a sustainable run of profitable quarters. The company racked up nine consecutive quarterdof loses, and has seen losses of nearly a half-billionb dollars in the past three years.
The struggle becamse a financial crisis as the recession has worsened and consumera haveslowed spending.