Hilco, CCMP circling retailer Eddie Bauer - sources

Tue Jun 9, 2009 10:45pm BST
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By Phil Wahba and Emily Chasan

NEW YORK, June 9 (Reuters) - Suitors are lining up to buy assets of U.S. clothing retailer Eddie Bauer Holdings Inc EBHI.O ahead of an expected bankruptcy filing within the next few weeks, according to people familiar with the discussions.

Hilco Consumer Capital is in talks with the outdoor apparel retailer about a possible deal once a bankruptcy filing occurs, and private equity firm CCMP Capital Advisors LLC is weighing an offer for the company, these people said.

The people asked not to be named because the talks are not public.

An Eddie Bauer representative did not immediately return a call seeking comment.

Eddie Bauer has been posting losses on falling sales this year. The company said in January that it had hired investment banking firm Peter J. Solomon Co for restructuring advice and that it has been working to cut costs and preserve cash.

A representative of Peter J. Solomon was not immediately available.

If Eddie Bauer files for bankruptcy it would be the second trip to bankruptcy court for the company, which was started in 1920 in Seattle by its namesake as a sport shop.

The retailer emerged from Chapter 11 bankruptcy in 2005, after former owner Spiegel Catalog sought bankruptcy protection in 2003.  Continued...

 
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