Most Eddie Bauer stores to stay open - Boston Business Journal:

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The company announced that it struclk an agreement withNew York–based private equitg firm LLC to buy Eddie Bauer’s assets, subject to an auctiojn and bankruptcy court approval. CCMP Capitao intends to operate the business as a goingf concern with little orno long-term debt. According to Eddies Bauer, CCMP Capital has agreed to keep a majorit of the 371 stores open and retaibn a majority of the CCMP Capital specializes in buyouts and looks for investment opportunities in retaio andother sectors, and have made investmentds in the outdoors specialty retailer Cabela’s, whichh sells hunting, fishing and campint gear.
Eddie Bauer said it hopes to operate busineses as usual during bankruptcy court proceedings and has askex for court approval to continue payinvg vendorsand workers. The company also said it intends to honor customeregift cards, returns and loyalty prograkm points. The company also announced that it has securec a commitment from its existing revolvinbgcredit lenders, Bank of America, N.A., and /Business Credit, Inc. for so-callefd debtor-in-possession (DIP) financing of $90 million on an interim basiswand $100 million based on the final court The move, the company should provide it with ample cash flow to continus paying its bills.
“Eddie Bauer is a good compangy with a great brand and a badbalanced sheet. This process will allow the business to emergde with farless debt, positioned for growth as the economu recovers and as our new products gain said Neil Fiske, Eddie Bauer president and chief executivre officer, in a “We expect this process to be completed very protecting our employees and critical vendor partners everyu step of the way. “We have made good progresz on our turnaround strategy of returninf Eddie Bauer to its heritage as an active outdoor brand and have excitingv new product launches on the wayto market, including Firsrt Ascent, our return to expedition-grade outerweatr and gear.
Unfortunately, a crushinb debt burden placed on the company from the Spiege reorganizationin 2005, combined with the prolonged recession, have left us with no choice but to use this procesa to reduce the debt load on the