Private equity firm Golden Gate Capital has acquired the assets of Eddie Bauer Holdings Inc. Golden Gate Capital reportedly won the auction for Eddie Bauer with an all-cash bid of $286 million. Representatives for Eddie Bauer said Golden Gate would retain the majority of the companys 370 stores and 10,000 global employees.
Eddie Bauer said in June it would seek court approval to sell its assets to private equity firm CCMP Capital for $202 million. CCMP was the “stalking horse” bidder for the bankruptcy auction. A stalking horse submits a starting bid to set a floor under other possible offers in exchange for certain protections that often include break-up fees.
The filing in U.S. Bankruptcy Court in Delaware listed total assets of $476.1 million and total debt of $426.7 million as of May 30. The retailers largest unsecured creditor is the Bank of New York, which is owed $75 million.
The company noted that in April 2009 it negotiated an amendment with its senior term loan lenders that provided short-term relief on its loan covenants. The company said it explored various paths for restructuring its balance sheet but was ultimately unable to reach an agreement.
Eddie Bauer Inc. filed for bankruptcy in 2003 along with its former parent Spiegel Inc. Shareholders, which rejected a proposal to sell the brand to buyout firms Sun Capital Partners Inc. and Golden Gate Capital in 2007 for around $280 million.
