Bankruptcy

Eddie Bauer Bankruptcy Sale Proposed

By mcbride

Too much debt forced Eddie Bauer into bankruptcy and now an entity which owns several other retail chains is offering to buy its assets, maintain its corporate headquarters in Bellevue and continue current management.  ?CCMP [the stalking horse] hopes to complete the sale within 45 days because a quick transfer of ownership would allow Eddie Bauer to focus on the holiday-sales season and eliminate a cause for uncertainty with suppliers, Lynch said.

CCMP, which would get a breakup fee of $5.25 million if the deal does not go through, specializes in buyouts and growth-equity investments. Its other retail investments include Cabela’s, Guitar Center, 1-800-flowers.com and Quiznos.

Eddie Bauer said it has been trying to cut costs and preserve cash as part of a turnaround effort it believes is working, despite the recession.?

Of course, because of the bankruptcy Code provisions on asset sales, other parties may bid on the same assets and there could be an auction of sorts.  However, if the proposed buyer has done its job well, that could be very difficult.  

Here is a link: http://seattletimes.nwsource.com/html/businesstechnology/2009352899_eddiebauer18.html

Michael

Full post as published by Texas Lawyer Blog on June 18, 2009 (boomark / email).