Business

Is Eddie Bauer Going Out of Business in 2026?

Sofia

February 19, 2026

Published on Feb 19, 2026

Updated on Feb 20, 2026

9 min read

Contents

Is Eddie Bauer Going Out of Business in 2026, or is It Just Filing for Bankruptcy?
What Exactly Happened in February 2026 With Eddie Bauer’s Chapter 11 Filing?
Why Did Eddie Bauer File for Chapter 11 Bankruptcy Protection?
1. Financial Pressures and Declining Sales
2. Inflation, Tariffs, and Supply Chain Challenges
Which Eddie Bauer Stores Are Closing Across the United States and Canada?
1. United States - Affected States
2. Canada - Affected Provinces
Will All Eddie Bauer Brick-and-mortar Stores Shut Down Permanently?
Is Eddie Bauer’s Online Store Still Operating in 2026?
Who Owns the Eddie Bauer Brand, and How Does Ownership Affect Its Future?
What Happens to Liquidation Sales, Gift Cards, and Return Policies During Bankruptcy?
1. Understanding Liquidation Sales
2. What You Should Know About Returns and Gift Cards?
Could a Buyer Save Eddie Bauer’s Retail Stores Before the Final Closure Deadline?
What Should You Do if Your Local Eddie Bauer Store is Closing?
Frequently Asked Questions

Eddie Bauer’s recent bankruptcy filing has sparked widespread concern among shoppers and loyal customers across the United States and Canada.

While headlines suggest major closures, the reality is more nuanced. The company operating its North American retail stores has filed for Chapter 11 protection and begun liquidation sales, but the Eddie Bauer brand itself is not disappearing.

Physical locations are winding down unless a buyer steps in, yet online and wholesale operations continue under separate management.

Here are the key facts you should know:

North American retail stores are closing through liquidation.
E-commerce and wholesale operations remain active.
Authentic Brands Group owns the brand’s intellectual property.
A court-supervised sale could still change the outcome.

To understand what this means for your local store, your online orders, and the future of the brand, continue reading for a complete breakdown of what’s happening in 2026.

Is Eddie Bauer Going Out of Business in 2026, or is It Just Filing for Bankruptcy?

When you hear “bankruptcy,” it’s natural to assume a company is shutting down permanently. But bankruptcy can mean different things depending on the type of filing and the business structure involved.

In this case, Eddie Bauer LLC, the retail operator of stores in North America, filed for Chapter 11 bankruptcy in February 2026. That’s not the same as the entire Eddie Bauer brand going out of business.

Chapter 11 allows a company to restructure its debts, renegotiate leases, and potentially sell assets while continuing limited operations during the court process.

However, the filing also initiated going-out-of-business sales at remaining stores, signaling a likely wind-down of physical retail operations unless a buyer steps in.

So if you’re wondering, is Eddie Bauer going out of business completely? The more accurate answer is:

The North American retail store operator is winding down.
The brand itself is not necessarily ending.
Online and wholesale operations are currently unaffected.

Understanding that distinction is critical before drawing conclusions.

What Exactly Happened in February 2026 With Eddie Bauer’s Chapter 11 Filing?

What Exactly Happened in February 2026 With Eddie Bauer’s Chapter 11 Filing

In early February 2026, Eddie Bauer LLC filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of New Jersey. The filing revealed significant financial strain.

According to court documents:

The company had estimated liabilities between $1 billion and $10 billion.
Assets were estimated between $100 million and $500 million.
Average weekly disbursements were approximately $1.6 million.
Cash on hand was reported at roughly $20 million.

The company entered into a restructuring pact with secured lenders while beginning liquidation sales at more than 175–220 remaining U.S. and Canadian stores.

Catalyst Brands CEO Marc Rosen addressed the situation, stating:

“This is not an easy decision. However, this restructuring is the best way to optimize value for the retail company’s stakeholders and ensure strong liquidity and cash flow.”

The filing allows the company to pursue a court-supervised sale process. If a buyer emerges, some or all stores could remain open. If not, the wind-down will proceed.

Why Did Eddie Bauer File for Chapter 11 Bankruptcy Protection?

Eddie Bauer’s retail struggles didn’t happen overnight. The bankruptcy filing points to a combination of long-term structural challenges and recent economic pressures.

Financial Pressures and Declining Sales

Over the past several years, Eddie Bauer’s brick-and-mortar stores experienced sustained declines in sales. Changing consumer preferences, increased competition from performance-focused outdoor brands, and shifting shopping habits toward digital platforms all contributed.

A restructuring advisor told the court:

“As a result, the debtors have endured a sustained period of negative earnings.”

At its peak in 2001, Eddie Bauer had nearly 600 stores. By early 2026, that footprint had shrunk dramatically.

Inflation, Tariffs, and Supply Chain Challenges

Broader retail headwinds worsened the situation following the pandemic. Several economic factors compounded the strain:

Persistent inflation increased operating costs.
Supply chain disruptions affected inventory flow.
Tariff uncertainty created pricing instability.
Consumers reduced discretionary spending on apparel.

Marc Rosen acknowledged:

“Over the past year, these challenges have been exacerbated by increased costs of doing business due to inflation, ongoing tariff uncertainty, and other factors.”

When you combine shrinking margins with high lease obligations across malls and outlet centers, the financial strain becomes difficult to reverse quickly.

Which Eddie Bauer Stores Are Closing Across the United States and Canada?

Which Eddie Bauer Stores Are Closing Across the United States and Canada

Following its Chapter 11 filing, Eddie Bauer began liquidation sales across approximately 175–220 stores in the United States and Canada. Earlier in January, 49 store leases were allowed to expire, leading to immediate closures in several locations.

The closures affect a wide range of states and provinces, particularly in major retail markets and outlet centres.

United States – Affected States

State	Status
California	Liquidation / Lease Expired
Florida	Liquidation
Texas	Liquidation
New York	Liquidation
Washington	Liquidation
Pennsylvania	Liquidation
Illinois	Liquidation
Georgia	Liquidation
North Carolina	Liquidation
New Jersey	Liquidation

Canada – Affected Provinces

Province	Status
Ontario	Liquidation
British Columbia	Liquidation
Alberta	Liquidation
Nova Scotia	Liquidation
Saskatchewan	Liquidation
New Brunswick	Liquidation

Customers in states such as Florida, Texas, California, and Washington may already notice clearance signage in malls and outlets. Unless a buyer steps in, liquidation sales are expected to conclude by April or May 2026.

If you’re located in states like Florida, Texas, California, or Washington, you’ve likely already seen clearance signage in outlet malls and shopping centers.

Unless a buyer intervenes, liquidation sales are expected to conclude by April or May 2026.

Will All Eddie Bauer Brick-and-mortar Stores Shut Down Permanently?

As of now, expectations suggest that most remaining North American retail locations of Eddie Bauer will close permanently unless a court-approved buyer acquires the business. The wind-down is happening in stages rather than through an immediate shutdown.

Leases that expired earlier in the year were not renewed, and remaining stores are currently running liquidation sales. Final bids for acquisition were scheduled as part of the bankruptcy proceedings. If no buyer emerges, a complete retail exit will follow.

Under Chapter 11, stores can stay open temporarily during clearance periods, typically for 10–13 weeks. While a last-minute acquisition remains possible, current filings indicate a likely full withdrawal from physical retail in North America.

Is Eddie Bauer’s Online Store Still Operating in 2026?

Is Eddie Bauer’s Online Store Still Operating in 2026

Yes. Eddie Bauer’s online store remains operational and is not directly affected by the retail bankruptcy filing.

The company’s e-commerce and wholesale operations are managed by Outdoor 5, LLC, which assumed those licenses earlier in 2026. This separation helps protect digital sales from the financial issues facing brick-and-mortar stores.

Here’s a simplified comparison of business segments:

Business Segment	Status in 2026	Affected by Chapter 11?
U.S./Canada Retail Stores	Liquidating	Yes
E-commerce (Online Store)	Operating	No
Wholesale Distribution	Operating	No
International Stores	Operating	No

If you prefer shopping online, you can still place orders through the official website. However, as with any restructuring situation, it’s wise to stay informed about policy updates or operational changes.

Who Owns the Eddie Bauer Brand, and How Does Ownership Affect Its Future?

Understanding ownership helps clarify whether Eddie Bauer is truly going out of business or simply restructuring its retail footprint.

Authentic Brands Group (ABG) owns the intellectual property (IP) associated with the Eddie Bauer brand. This includes trademarks, brand assets, and licensing rights. The retail stores in the U.S. and Canada were operated under license by Eddie Bauer LLC, which is part of Catalyst Brands.

When the retail operator filed for Chapter 11 bankruptcy, it did not affect ABG’s ownership of the brand.

Here’s a breakdown of the structure:

Entity	Role
Authentic Brands Group	Owns brand IP
Catalyst Brands	Operated retail stores
Outdoor 5, LLC	Operates e-commerce & wholesale

Because the brand is licensed, Authentic Brands could potentially partner with a new retail operator in the future. This licensing model means the brand itself can survive even if one operating entity fails.

What Happens to Liquidation Sales, Gift Cards, and Return Policies During Bankruptcy?

What Happens to Liquidation Sales, Gift Cards, and Return Policies During Bankruptcy

When a retailer enters liquidation, customer policies often change, and it’s important to understand how that may affect your purchases.

Understanding Liquidation Sales

Liquidation sales typically begin with moderate discounts and increase over time. Early markdowns may range from 20–40%, but final discounts can become steeper as inventory levels decline.

Common characteristics of liquidation sales include:

Final-sale pricing
No price adjustments
Limited size and style availability
Shortened or eliminated return windows

As inventory sells through, selection becomes more limited. Popular sizes and seasonal items tend to sell quickly.

What You Should Know About Returns and Gift Cards?

Gift card policies during bankruptcy can vary. In many cases, companies continue honoring gift cards for a limited time, but deadlines may apply.

To protect yourself:

Use gift cards as soon as possible.
Keep receipts for any purchases made during liquidation.
Confirm return policies before completing your purchase.
Assume most clearance items will be non-refundable.

If you are shopping during liquidation, it’s best to treat purchases as final unless a store associate confirms otherwise.

Could a Buyer Save Eddie Bauer’s Retail Stores Before the Final Closure Deadline?

Could a Buyer Save Eddie Bauer’s Retail Stores Before the Final Closure Deadline

Yes, although the likelihood depends on whether a serious and financially capable buyer emerges during the court-supervised sale process.

At the time of filing, there were reported indications of interest from potential bidders. A sale hearing was scheduled to evaluate possible transactions.

Possible outcomes include:

A buyer acquires all stores and keeps them open.
A buyer acquires select locations while closing others.
No buyer emerges, resulting in full closure.

However, an “indication of interest” is not the same as a finalized agreement. Retail turnarounds require significant capital investment, operational restructuring, and brand repositioning. Without those elements, sustaining physical stores in today’s retail climate can be challenging.

What Should You Do if Your Local Eddie Bauer Store is Closing?

If your local store is participating in liquidation, there are practical steps you can take to protect your purchases and stay informed.

You should:

Confirm official closure dates with store associates.
Redeem any outstanding gift cards promptly.
Ask about warranty coverage before purchasing outerwear or gear.
Avoid assuming future returns will be accepted.
Monitor the company’s website for updates regarding policies or ownership changes.

Many longtime customers have expressed disappointment about the closures. One forum user shared:

“I love their jackets, but I’ve noticed the stores feel emptier every year. It’s sad to see this happening.”

While liquidation may offer opportunities for discounts, it’s important to shop strategically and understand that policies may differ from standard retail conditions. Staying informed will help you make confident decisions during this transition period.

Final Thoughts

So, is Eddie Bauer going out of business in 2026? The most accurate answer is that Eddie Bauer’s North American retail store operator is winding down under Chapter 11 bankruptcy. However, the brand itself is not necessarily disappearing.

Physical stores across the U.S. and Canada are liquidating. Online sales, wholesale distribution, and international operations remain active under separate licensing agreements.

For now, Eddie Bauer’s presence in malls and outlet centers appears to be ending. But as long as Authentic Brands Group controls the brand and licenses it strategically, the name may continue, just in a different format.

If you’re a longtime customer, the story isn’t over. It’s simply evolving.

Frequently Asked Questions

Has Eddie Bauer filed for bankruptcy before 2026?

Yes. Eddie Bauer previously filed for bankruptcy in 2003 and again in 2009. The 2026 filing marks the third bankruptcy related to its retail operations in just over two decades.

Are Eddie Bauer stores outside North America affected?

No. International stores operate under separate license agreements and are not included in the Chapter 11 filing.

How many stores did Eddie Bauer have at its peak?

At its height in 2001, Eddie Bauer had nearly 600 stores globally.

Will Eddie Bauer still sell products through department stores?

Yes. Wholesale partnerships remain active, and merchandise may continue appearing in department stores like JCPenney.

Is the Eddie Bauer brand considered outdated?

Some retail analysts have suggested younger shoppers perceive the brand as less relevant compared to performance-focused competitors. However, brand repositioning efforts are underway.