The retail marketplace does not have any nostalgia. Just because a brand has been around for decades, or even a century, does not guarantee that it will continue past 2026.
In the coming year, we may see the death of both Sears and K-Mart, two historic brands that helped define American retail. It's nearly unfathomable to think that Sears, a brand that was bigger than Walmart in its day, would now be a chain with less than 10 stores poised to close once leases and other obligations are worked out.
One of the last Sears operated at a mall near our home, and it had limited merchandise, a handful of workers, and was only kept open so its owner had leverage in transferring its lease to the Dick's Sporting Goods that has taken over the spot. While it remained open, it was a sad reminder of what the chain once was.
Past prominence, however, does not guarantee anything in the present. That's why Saks Global finds itself fighting for survival in Chapter 11 bankruptcy, and multiple legacy brands have closed their doors.
Now, another famous brand, Eddie Bauer, appears poised to file for Chapter 11 bankruptcy and close its fleet of more than 200 retail locations, according to a report from Women's Wear Daily (WWD).
Eddie Bauer has filed Chapter 11 bankruptcy twice
Eddie Bauer has filed for Chapter 11 bankruptcy twice before.
Its first bankruptcy happened in 2003.
Eddie Bauer’s parent company at the time, Spiegel Inc., filed for Chapter 11 bankruptcy in March 2003.
Spiegel’s financial troubles led to the closure of many Eddie Bauer stores.
After restructuring, Eddie Bauer emerged from Spiegel’s bankruptcy in June 2005 as a stand-alone company called Eddie Bauer Holdings, Inc. Source: SEC filings
Its second filing took place in 2009.
On June 17, 2009, Eddie Bauer Holdings Inc. filed for Chapter 11 bankruptcy protection on its own due to heavy debt, slumping sales, and recession-era pressures.
At the time, the company had hundreds of retail stores and debts that strained its finances.
During the bankruptcy process, Eddie Bauer secured financing to continue operations while seeking a buyer. Source: The New York Times
In July 2009, Eddie Bauer was acquired out of bankruptcy by private equity firm Golden Gate Capital at a bankruptcy auction for around $286 million, according to a Golden Gate Capital press release.
Now, the company is preparing to file for Chapter 11 bankruptcy again and has plans to close all its stores.
Eddie Bauer preparing a Chapter 11 bankruptcy filing
"Eddie Bauer is preparing to file for Chapter 11 bankruptcy, with sources claiming that the retailer would be closing down an estimated 200 locations across North America," according to a Jan. 29 WWD story.
The chain would exit the U.S. retail market, but its stores in Japan would not be impacted. It's a complicated transaction due to the company's ownership, RetailWire reported.
"Following the formation of Catalyst Brands last year (by Simon Property Group, Brookfield Corp., Authentic Brands Group and Shein) — with Eddie Bauer, Aeropostale, Lucky Brand, Brooks Brothers, Nautica, and JCPenney making up the brand holdings — Eddie Bauer’s reported bankruptcy would leave the manufacturing, e-comm, and wholesale operations in North America intact. Those operations are currently in the process of transitioning away from Catalyst Brands to a new licensee," WWD’s Jean E. Palmieri reported.
That would mean the end of Eddie Bauer as a retail chain, but the brand would continue to exist and be sold elsewhere.
Eddie Bauer is expected to close all its retail stores. Shuttterstock ·Shuttterstock
Eddie Bauer lost its way
GlobalData Managing Director Neil Saunders sees Eddie Bauer as a troubled brand.
"Having been in quite a few Eddie Bauer stores over the past year, I really struggle to understand what the point of difference is. Stores are crammed full of product, are hard to shop, and don’t provide anywhere near enough inspiration. There’s very little storytelling. That doesn’t cut it in an outdoors category that remains soft and is full of innovative brands like Fjallravenn and Arcteryx, which run fantastic stores," he wrote on RetailWire.
His Brain Trust colleague, Craig Sundstrom, blames the company's ownership.
"Well, yeah. I think the lesson — and it’s not learned as much as relearned — is that a brand becomes expendable when it’s part of a conglomerate…just as L&T was sidelined once NRDC acquired Saks," he posted.
"Catalyst Brands takes the portfolio operator model to its logical endpoint: financial arbitrage masquerading as brand stewardship. The seamless migration of Eddie Bauer’s e-commerce to Outdoor 5, even as 200 stores close, isn’t just operational triage; it’s monetizing the exit itself while shedding unprofitable physical operations," he shared.
Iconic chains that have closed for good
A number of famous brands have closed their doors since 2020 including:
Lord & Taylor: Founded in 1826, one of America’s oldest department stores. Filed for bankruptcy in 2020 and closed all of its brick-and-mortar stores by 2021 amid pandemic-era declines, according to Modern Retail.
Stein Mart : Founded in 1908. Filed for bankruptcy in 2020 and closed its 279 physical stores that year (brand exists online only), CNBC reported.
Modell’s Sporting Goods: Founded in 1889. One of the oldest sporting goods retailers. Filed for bankruptcy and liquidated all stores in 2020 after 131 years, according to Modern Retail.
Joann Fabrics: Founded in 1943. After multiple bankruptcies, closed all 800-plus stores by May 2025, reported TheStreet's Maurie Backman.
Rite Aid: Founded in 1962. Once among the U.S.’s largest pharmacy chains. Filed for bankruptcy twice (2023 and 2025) and closed all remaining stores by late 2025, according to CBS News.
Hudson’s Bay (department store division). Part of the Hudson’s Bay Company, North America’s oldest commercial enterprise. The traditional department store chain was liquidated and all stores closed by June 1, 2025, Retail Dive reported.
