Eddie Bauer Holdings Inc. has a new owner: private equity firm Golden Gate Capital.
Just about one month after Eddie Bauer, No. 80 in the Internet Retailer Top 500 Guide, filed for Chapter 11 in the U.S. Bankruptcy Court in Delaware, the court has approved a deal by Golden Gate to acquire the retailer for $286 million in cash.
The transaction is expected to close in early August, says Eddie Bauer. “The sale will enable Eddie Bauer to emerge quickly from bankruptcy as a new company positioned for success, with a well-capitalized partner, a substantially lower cost structure, little or no long-term debt and a much stronger balance sheet,” the retailer says.
Even with a new owner, Eddie Bauer, which sells online at EddieBauer.com and FirstAscent.com, through its network of 371 stores and by catalog, isn’t expecting any immediate operations changes, the company says. “Golden Gate has indicated its support for Eddie Bauer's management team and its strategy, including operating as a tri-channel retailer with an extensive store fleet,” says Eddie Bauer. “Golden Gate plans to maintain the substantial majority of Eddie Bauer's stores and employees in the newly formed company.”
The Eddie Bauer acquisition adds to Golden Gate’s growing portfolio of apparel and accessories retail chain and direct marketing companies. Over the last five years, the private equity firm has completed approximately 20 multichannel retail acquisitions totaling more than of $3.5 billion in annual revenue. In June, Golden Gate paid The Talbots Inc. (No. 106) $75 million for J. Jill, a multichannel retailer of women’s apparel and shoes that sells online at JJill.com. Other e-commerce brands owned by Golden Gate include Blair.com and NormThompson.com.
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