Eddie Bauer stores may be facing an uncertain future as its parent company, Catalyst Brands, prepares to file for bankruptcy protection, a source told Fast Company.
The potential filing could force the retailer to close all of its North American locations, raising concerns for employees and loyal customers.
Catalyst Brands, which also manages Lucky Brand, Aéropostale, Nautica, Brooks Brothers, and JCPenney, has not confirmed the details of the bankruptcy filing.
According to reports, the move could happen as soon as this month. Industry sources say that, for now, the potential filing would only impact Eddie Bauer stores and not the other brands under Catalyst's umbrella.
According to Yahoo, Eddie Bauer currently operates about 180 stores across the United States and Canada, along with 20 international locations.
The brand is known for its outdoor apparel and has been a fixture in American retail for decades. A spokesperson from Catalyst Brands did not respond to requests for comment.
Catalyst Brands was formed in 2025 following a merger between JCPenney and SPARC Group, a multi-brand operator.
Eddie Bauer might close all stores in North America. There was a time in life when, if you had an Eddie Bauer Edition Ford Explorer, it was an incredible status symbol. pic.twitter.com/gL1iDXn4qr
— Colin Dunlap (@colin_dunlap) February 2, 2026
Analysts Warn Eddie Bauer Could Close
The merger combined operations, management, and distribution networks for several retail brands under one company.
However, these brands have faced ongoing challenges. JCPenney, for instance, struggled with declining foot traffic and low sales, leading to its own bankruptcy during the pandemic.
The department store emerged from bankruptcy in 2020 as a private company after acquisition by Simon Property Group and Brookfield Asset Management, FoxBusiness reported.
Despite the merger, the retail environment has remained difficult. JCPenney has continued to close some locations in recent years to adjust to changing market conditions, and now Eddie Bauer may face a similar fate.
Retail analysts note that Catalyst's potential bankruptcy highlights the pressures facing mid-sized and legacy retail brands in a competitive market dominated by online shopping and fast-fashion competitors.
"Eddie Bauer has a strong brand, but the challenges of physical retail and economic pressures make survival tricky," one analyst said.
Originally published on vcpost.com
