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

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The company announced that it struck an agreemen t withNew York–based private equity firm LLC to buy Eddiwe Bauer’s assets, subject to an auction and bankruptcu court approval. CCMP Capital intends to operate the businessd as a going concern with littlee orno long-term debt. According to Eddi Bauer, CCMP Capital has agreed to keep a majority of the 371 storea open and retain a majority ofthe employees. CCMP Capitall specializes in buyouts and looks for investmenr opportunities in retail andother sectors, and have made investmentd in the outdoors specialty retailer Cabela’s, whichj sells hunting, fishing and camping gear.
Eddi e Bauer said it hopes to operate business as usuakl during bankruptcy court proceedings and has asked for cour t approval to continue paying vendorsand workers. The companyy also said it intends to honor customergift cards, returnss and loyalty program points. The company also announced that it has secureds a commitment from its existingy revolvingcredit lenders, Bank of N.A., and /Business Credit, Inc. for so-calledx debtor-in-possession (DIP) financing of $90 million on an interim basisand $100 million based on the finall court order. The move, the company said, should provide it with ample cash flow to continue payinghits bills.
“Eddie Bauer is a good companyt with a great brand and a bad balance This process will allow the business to emerge with far less positioned for growth as the economt recovers and as our new productsxgain traction,” said Neil Fiske, Eddiee Bauer president and chief executive officer, in a “We expect this process to be complete d very quickly, protecting our employees and critical vendorf partners every step of the way.
“We have made good progressx on our turnaround strategy of returninf Eddie Bauer to its heritage as an active outdoorf brand and have exciting new product launche s on the wayto market, including Firstf Ascent, our return to expedition-grad outerwear and gear. a crushing debt burden placed on the company from the Spiegel reorganizatiobnin 2005, combined with the severe, prolonged have left us with no choice but to use this processw to reduce the debt load on the