Eddie Bauer bankruptcy to cause 58 NJ layoffs
It has about 180 stores across U.S. and Canada
By: Daniel Munoz
NorthJersey.com
USA Today Network - New Jersey
..... The bankruptcy of outdoor apparel chain Eddie Bauer LLC announced February 9 [2026] will mean the layoff of 58 employees in New Jersey, public filings with the state Department of Labor show.
....
Eddie Bauer LLC operates nearly 180 stores across the U.S. and Canada - including six in New Jersey. those are at risk closing if a buyer is not found by April 30 [2026] during the court-supervised sales process.
..... In that case, Eddie Bauer LLC, founded in 1920, will continue with tis going-out-of-business sales and liquidate its stores.
..... According to public filings this month, [02/2026] the layoffs went into effect on February 2 [2026] and will happen again by May 15. [2026] They will affect employees at Eddie Bauer's stores in Bergen, Morris, Camden, Monmouth and Somerset counties. [NJ]
..... "This decision was not made lightly, and we are commuted to transparency and fair treatment of our employees during this period of transition," company spokesperson Luc Herbowy said in a statement on February 10. [2026]
..... Eddie Bauer stores in the U.S. and Canada "continue to be open to serve customers, and we aren't able to forecast any individual closing dates by locations at this time," he said.
.....
Marc Rosen, CEO of Catalyst Brands, which operates Eddie Bauer's brick-and-mortar operations, said the bankruptcy decision was not easy.
.... "However, this restructuring is the best way to optimize vale for the retail company's stakeholders and also ensure Catalyst Brands remained profitable and with strong liquidity and cash-flow," he said.
.....
A Chapter 11 bankruptcy does not necessarily mean the company is doomed to go under. It's a process that enables some companies to survive.
..... During a bankruptcy process, the company "usually proposes a plan of reorganization to keep its business alive and pay creditors over time," the U.S. courts website says.
..... Some major companies hat have declared and survived bankruptcy include Apple, General Motors and Marvel entertainment.
..... Eddie Bauer's potential closure marks the latest bankruptcy filed since the end of the COVID-19 pandemic five years ago.
..... Other brands that have gone bankrupt include Francesca's Bed Bath & Beyond, Saks, the Christmas Tree Shops, Rite Aid, forever 21 and Party City.
..... There were 785 bankruptcy in 2025, the third consecutive year that the number of bankruptcies rose, data by the Wall Street rating agency S&P Global showed.
..... The number of bankruptcies in 2025 was the highest since the 828 in 2010 as the nation reeled form the fallout of the Great Recession two years earlier, S&P reported.
..... The layoffs will affect employees at these six Eddie Bauer stores in New Jersey:
* American Dream in East Rutherford
* Bridgewater Commons in Bridgewater
* Garden State Plaza in Paramus
* Gloucester Premium Outlets in Blackwood
* Jersey
Shore Premium Outlets in Tinton Falls
* Rockaway Townsquare in Rockaway
..... Last month, Eddie Bauer spun off its e-commerce and wholesale operation to another company. Outdoor 5, according to an announcement by Authentic Brand Group, which owned the Eddie Bauer intellectual property rights. The Outdoor 5 petitions will not be affected by the Chapter 11 proceeds and authentic "may license the brand to other operators," according to the February 9 [2026] bankruptcy
announcement.
..... Authentic also owns brands such as Reebok, Nautical, Brooks Brothers and Dockers.
...... This article contains information from USA Today.