Eddie Bauer Files For Chapter 11 Bankruptcy
Outdoors clothing retailer Eddie Bauer Holdings filed for Chapter 11 bankruptcy/restructuring today, become the latest victim of depressed consumer spending in the ongoing recession, now in its 18th month.
Eddie Bauer said its cash flow problems were causing its suppliers to have doubts about the retailer and added that it might not be able to meet all the covenants of $225 million worth of outstanding debt.
The retailer reported a first-quarter loss of $45 million. Its bankruptcy filing reports that it has $476 million in assets and $426 million in debt.
About 70 percent of the total U.S. GDP is based on consumer spending. This recession has turned many of us from a nation of spenders to a nation of savers. Which is good for individuals but bad for the economy, as a whole.
Other high-profile retailers to have declared bankruptcy during this recession: Circuit City, Linens 'N Things and Mervyns.
June 17, 2009; 2:44 PM ET
Categories: The Ticker | Tags: Circuit City, Eddie Bauer, bankruptcy
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