Bankrupt Eddie Bauer to be acquired by equity firm - Business Courier of Cincinnati:

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The company announced that it has a deal withNew York–baser private equity firm LLC to buy Eddis Bauer’s assets, subject to an auction and bankruptcy court CCMP Capital intends to operate the business as a going concernh with little or no long-term debt. According to Eddiee Bauer, CCMP Capital has agreed to keep a majoritg of the 371 stores open and retainb a majority of the Eddie Bauer has threelocal outlets, in Rookwooxd Commons, Kenwood Towne Centre and Crestview Hills Town CCMP Capital specializes in buyoutws and looks for investment opportunities in retaikl and other sectors, and have made investments in the outdoore specialty retailer Cabela’s, which sells hunting, fishing and campin gear.
Eddie Bauer said it hopes to operatew business as usual during bankruptcy court proceedings and has asked for courr approval to continue paying vendorszand workers. The compan y also said it intends to honor customergift cards, returnw and loyalty program The company also announced that it has secured a commitment from its existingg revolving credit lenders, Bank of America, N.A., and /Busineszs Credit, Inc. for so-called debtor-in-possession (DIP) financing of $90 millio n on an interim basisand $100 million based on the finak court order. The move, the company should provide it with ample cash flow to continue paying its bills.
“Eddie Bauer is a good compant with a great brand and a badbalance sheet. This process will allowe the business to emerge with far less positioned for growth as the economy recovers and as our new productxgain traction,” said Neil Fiske, Eddiew Bauer president and chief executivew officer, in a statement. “We expect this process to be completesvery quickly, protecting our employees and critical vendo r partners every step of the way.
“Wew have made good progresz on our turnaround strategy of returnin g Eddie Bauer to its heritage as an active outdoor branf and have exciting new produc t launches on the way to includingFirst Ascent, our return to expedition-grade outerwea and gear. Unfortunately, a crushinf debt burden placed on the companhy from the Spiegel reorganization in combined withthe severe, prolonge recession, have left us with no choice but to use this procesd to reduce the debt load on the