Eddie Bauer Files Chapter 11, Will Close Three New Jersey Locations
Eddie Bauer has filed for Chapter 11 bankruptcy, citing $430 million in secured and unsecured debt and plans to shutter 25 underperforming stores. The chain will close three New Jersey outlets—at Paramus Park, Cherry Hill Mall and Menlo Park Mall—and seek lease concessions to reduce annual occupancy costs.
1. Bankruptcy Filing Details
Eddie Bauer initiated Chapter 11 proceedings after years of declining same-store sales, listing approximately $430 million in combined secured and unsecured liabilities. The company cited high occupancy costs and inventory write-downs as primary drivers of the restructuring.
2. New Jersey Store Closures
As part of its cost-cutting measures, the retailer will close 25 locations nationwide, including three New Jersey outlets: Paramus Park, Cherry Hill Mall and Menlo Park Mall. Affected employees will be offered severance and transfer opportunities where possible.
3. Lease Renegotiation Strategy
The company plans to renegotiate lease terms with landlords to reduce annual rent obligations by up to 20%, aiming to convert several remaining stores to smaller footprints or move to outlet formats. Landlords and mall operators now face pressure to agree on concessions to avoid further vacancies.