Eddie Bauer leaves bankruptcy
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BLOOMBERG NEWS
published on Wed, Jun 22, 2005

REDMOND, Wash. – Eddie Bauer Holdings Inc., formerly known as Spiegel Inc., has exited bankruptcy.

The retailer emerged after a two-year reorganization during which it sold two units including the Spiegel catalog.

Eddie Bauer, which has more than 400 retail stores, ended its bankruptcy case Tuesday, officials said in a statement. The company in May won approval for a reorganization plan that transferred ownership to Germany's Commerzbank AG and other unsecured creditors.

"We streamlined operations, recruited new talent to strengthen the team, and renewed our commitment to providing quality apparel and accessories that reflect a modern outdoor lifestyle," Chief Executive Officer Fabian Mansson said in a statement.

Spiegel filed for bankruptcy protection in New York in March 2003 after declining sales and credit-card defaults left it with $1.7 billion in debt. The company, which began in 1865 as a home furnishings store in Chicago, lost about $727 million in the two years leading to the filing.

Last year, the company sold its 100-year-old Spiegel catalog and Newport News women's apparel units to Pangea Holdings Ltd.