The parties expect to close the transaction some time during this year's first quarter. Eddie Bauer's management began marketing the 380-store chain in May when it started seeking strategic alternatives.

Affiliates of Sun Capital Partners, Inc. and Golden Gate Capital are active investors in the retail and consumer products industries. Among Sun Capital's current affiliated portfolio companies are Mervyn's, Shopko Stores, Lillian Vernon, Marsh Supermarkets, Anchor Blue Retail Group, Dim Branded Apparel and Most. Among Golden Gate Capital's current investments is Catalog Holdings, a $1.1 billion revenue direct marketer of women's apparel whose brands include Spiegel, Newport News, Appleseed's, Norm Thompson, Drapers and Damons, Venus, and Haband, among other titles. Other consumer-product investments include Herbalife, Eye Care Centers of America, Neways, and Leiner Health Products.

Catalog company Spiegel Inc. had owned the Eddie Bauer until 2003, when that company went bankrupt and sold its assets other than its Eddie Bauer operations. It later emerged as Eddie Bauer Holdings.