Bankrupt Spiegel Seeks to Open New Bauer Stores

Spiegel Group,

which has closed a number of its Eddie Bauer stores since filing for Chapter 11 bankruptcy protection in March, now wants to open some stores. The company on Nov. 5 filed a motion in the U.S. Bankruptcy Court for the Southern District of New York requesting a Nov. 18 hearing to get the approval to open seven new Eddie Bauer stores in five states and in Calgary, Alberta. In addition, the company is seeking court approval to open 10 more stores as opportunities arise.

“This is part of an overall plan to reposition and strengthen the Eddie Bauer store portfolio and, in turn, the overall financial performance of Eddie Bauer and the entire Spiegel Group,” says spokesperson Allison Scherer.

Shortly after Spiegel’s Chapter 11 filing, L.L. Bean had inquired with the court about buying the Bauer unit. But Scherer says that the move isn’t intended to better position Eddie Bauer for possible sale.

Spiegel wants to open new Bauer stores in Lynnwood and Colorado Springs, CO; South Windsor, CT; Troutdale, OR; Lee, MA; Short Pump, VA; and Calgary. Eddie Bauer currently operates 468 stores in the U.S. and Canada, down from 545 a year ago.