Out in the Cold: Eddie Bauer Files for Chapter 11 Bankruptcy in New Jersey

Eddie Bauer LLC, the retail operator of approximately 180 Eddie Bauer stores across the U.S. and Canada, filed for voluntary Chapter 11 bankruptcy protection on February 9, 2026, in the United States Bankruptcy Court for the District of New Jersey under docket #26-11422-SLM. This marks the third bankruptcy filing for the iconic outdoor apparel brand in a little over two decades.

For shopping center owners and landlords, this filing raises immediate and practical concerns: rent payments, lease assumption or rejection, liquidation sales, co-tenancy implications, and the long-term viability of the space.

What Eddie Bauer Is Doing in Bankruptcy

The company has entered into a Restructuring Support Agreement (RSA) with its secured lenders to facilitate a swift and efficient Chapter 11 process. Through the proceedings, Eddie Bauer plans to conduct liquidation sales at its stores, while pursuing a going-concern sale of all or part of its operations. If a suitable buyer is not found, Eddie Bauer has indicated it will proceed with an orderly wind-down of its U.S. and Canadian store operations.

Retail and outlet stores are expected to remain open during the process, which often places landlords in a difficult position—balancing cooperation with protecting their rights under existing leases.

Eddie Bauer’s e-commerce and wholesale operations are not part of the bankruptcy, as they are managed by a separate licensee, Outdoor 5 LLC. The intellectual property associated with the Eddie Bauer brand is owned by Authentic Brands Group, which may license it to other operators. Stores outside the U.S. and Canada, operated by other licensees, are not part of the filing and will continue normal operations. The company reports over $1 billion in debt and attributes its challenges to declining sales, supply chain issues, inflation, tariff uncertainty, and other industry headwinds.

Why This Matters to Shopping Center Owners

Retail bankruptcies like Eddie Bauer’s are rarely “business as usual” for landlords. These cases directly impact:

• Rent disruption & admin expenses
• Lease assumption or rejection uncertainty
• Liquidation sales approvals and use restrictions
• Dark store risk and re-tenanting strategy
• Co-tenancy and financing implications

Early, informed action can significantly affect a landlord’s recovery and leverage.

Eddie Bauer joins a growing list of retailers seeking bankruptcy protection this year, as companies navigate restructuring to optimize value for stakeholders.

How Stark & Stark Helps Landlords Navigate Retail Bankruptcies

If you are a shopping center owner or landlord with an Eddie Bauer location, understanding your rights—and exercising them strategically—is critical.

Stark & Stark’s Shopping Center and Retail Development Group regularly represents landlords nationwide in major retail Chapter 11 cases, including in the District of New Jersey, Southern District of New York, District of Delaware, and other key jurisdictions.

Most recently, our Group has represented landlords and trade creditors in the Value City Furniture, TGI Friday’s, Express, Rite Aid, Big Lots, JOANN’s, Party City, Bed Bath & Beyond, David’s Bridal, and Sports Authority Chapter 11 bankruptcy cases. We focus exclusively on protecting landlord interests—helping owners preserve cash flow, minimize vacancy risk, and position assets for long-term stability.

Click here to see the list of 10 Retailers to Watch for a Possible Bankruptcy in 2026

For more information on how Stark & Stark can assist you, please contact shareholders Thomas Onder at (609) 219-7458 (tonder@stark-stark.com) or Joseph Lemkin at (609) 791-7022 (jlemkin@stark-stark.com).