Most Eddie Bauer stores to stay open - San Francisco Business Times:

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The company announced that it struck an agreement withNew York–bases private equity firm LLC to buy Eddie Bauer’s assets, subject to an auction and bankruptcy court CCMP Capital intends to operate the business as a goinf concern with little or no long-termn debt. According to Eddie Bauer, CCMP Capital has agreec to keep a majority of the 371 stores open and retain a majoritt ofthe employees. CCMP Capital specializess in buyouts and looks for investmeng opportunities in retail andother sectors, and have made investmentes in the outdoors specialty retailer which sells hunting, fishing and campingv gear.
Eddie Bauer said it hopes to operatr business as usual durin bankruptcy court proceedings and has asked for courtr approval to continue paying vendors and The company also said it intends to honor customefrgift cards, returns and loyalty progran points. The company also announcefd that it has secured a commitmentf from its existing revolvingfcredit lenders, Bank of America, N.A., and /Business Inc. for so-called debtor-in-possession (DIP) financing of $90 million on an interimk basisand $100 milliomn based on the final court order.
The the company said, should provide it with amplse cash flow to continue payingits “Eddie Bauer is a good companuy with a great brand and a bad balancw sheet. This process will allow the business to emerge with farless debt, positionedf for growth as the economy recovers and as our new productsa gain traction,” said Neil Fiske, Eddie Bauer presidenty and chief executive officer, in a statement. “We expecrt this process to be completedfvery quickly, protecting our employees and critical vendor partners every step of the way.
“Wwe have made good progress on our turnaround strategy of returniny Eddie Bauer to its heritages as an active outdoor brand and have exciting new product launches on the way to includingFirst Ascent, our return to expedition-gradee outerwear and gear. Unfortunately, a crushing debt burden placefd on the company from the Spiegelk reorganizationin 2005, combined with the prolonged recession, have left us with no choice but to use this process to reduce the debt load on the