Redmond, WA-based Eddie Bauer will continue to serve its customers through its stores, catalogs and Internet site. As part of the plan, Eddie Bauer will pursue a new strategic direction for its Eddie Bauer Home division, focusing on home products through licensing agreements.
As a result, 34 Eddie Bauer Home stores will close and about 700 jobs will be eliminated. The majority of the store closings are expected to occur in the second half of 2005. The retailer says this move will better utilize Eddie Bauer's resources and allow the brand to focus solely on its core apparel and accessories business.
Established in 1920, Eddie Bauer operates more than 400 stores across the US and Canada. Eddie Bauer also distributes more than 90 million catalogs annually and has joint venture partnerships in Japan and Germany.
Spiegel, which also operated mail-order catalogs under the Newport News and Spiegel names, filed for Chapter 11 bankruptcy protection on March 17, 2003. At the time, the move prompted industry speculation that the company would close stores or sell its Eddie Bauer chain.
However, the company has maintained and internally restructured the retailer, recently announcing a new nine-member board, which includes experts in management, finance, merchandising, marketing, human resources and communications.
"This is a world class board with extensive global expertise in retail, as well as corporate governance. The depth of knowledge, skill and talent amongst the individuals in this group will be tremendous assets for Eddie Bauer Holdings Inc," Fabian Mansson, president and chief executive officer for Eddie Bauer, said in a statement.
William End, former chairman and chief executive officer of Cornerstone Brands Inc., will serve as chairman of the board. The board also includes: John C. Brouillard, 57, chief administrative and CFO, H.E. Butt Grocery Co.; Howard Gross, 62, former CEO, Hub Distributing, Millers Outposts, Levi's Outlet Stores, divisions of American Retail Group Inc.; Paul E. Kirincic, 54, executive vice president with McKesson Corp.; Kenneth M. Reiss, 62, former managing partner with Ernst & Young LLP in New York; Laurie M. Shahon, 53, president and founder of Wilton Capital Group; Edward M. Straw, 66, former president of global operations for Estee Lauder Cos.; and Stephen E. Watson, 60, former president and chief executive officer, Gander Mountain LLC.
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