including Gordon Brothers Group and Hilco Consumer Capital LLC, sources are
telling Bloomberg News. Hudson Capital Partners LLC also may consider a bid, the
report said. One of the sources said Peter J. Solomon Co. is advising Eddie
Bauer.
Eddie Bauer, which emerged from bankruptcy in 2005, has
reported annual losses for the past three years. It has about 370 stores in the
In the fourth quarter, Eddie Bauer reported a net loss of
$127.5 million, or $4.13 per share, for the fourth quarter, compared to a net
loss of $18.2 million, or 59 cents, a year ago. The $155.8 million increase in
operating loss was primarily driven by $144.6 million of non-cash impairment
charges of trademarks ($80 million) and goodwill ($64.6 million) in Q4. Adjusted
EBITDA decreased to $54.0 million from $59 million for the fourth quarter of
2008.
Total revenues for the quarter decreased 5.7% to $369.9
million. Comparable store sales fell 5.7% for the quarter, excluding the effect
of foreign exchange rates resulting from the sharp decline in the Canadian
dollar. Gross margins for Q4 declined to 40.9% from 43.8% in the year-ago
quarter, as a result of higher markdowns spurred by the overall increase in
promotional activity by competitors during the holidays and higher costs
related to increases in headcount.
