Spiegel is becoming more active with its management of their Eddie Bauer subsidiary, asking the judge overseeing their Chapter 11 bankruptcy for permission to close around 30 stores and open 17 new ones. This action may not bode well for LL Beans interest in acquiring Bauer.
Of the 30 stores to be closed, 18 are in buildings where the lease is about to expire. All of the candidates for closure will remain in operation through the holidays, and because of the lease agreements, the list will not be made public until the end of the year.
Of particular interest to market analysts is the fact that, Spiegel asked for, and received, permission to open 17 new Bauer stores. Industry insiders think that this is a sign Spiegel may want to hold on to the chain, although it could be a move to make the chain look more attractive to potential suitors.
“Following a company as it moves through bankruptcy proceedings involves quite a bit of wading through legal motions,” Rich Donaldson, a Bean spokesman, told a local paper. “We continue to watch that, and the court does know of our interest.”
LL Bean has been looking into an acquisition of Eddie Bauer since March of this year, when Spiegel declared bankruptcy. Bean officials said they will continue to monitor any developments. LL Bean posted $1.1 billion in sales in 2002 while Eddie Bauer reported $1.6 billion.
