Bankrupt Spiegel Inc. plans to officially put its Eddie Bauer division up for sale again as soon as it files its reorganization plan, according to published reports.
Downers Grove, IL-based Spiegel has until Feb. 4 to file its reorganization plan. According to online publication TheDeal.com, though, the company will ask the court for several weeks’ extension. Spiegel filed for Chapter 11 bankruptcy protection in March 2003.
Apparel cataloger/retailer Eddie Bauer had been on the block last year, but with bids lower than expected, Spiegel put the sale on hold in the fall. David LeMay of Chadbourne & Parke, the law firm advising Spiegel’s creditors committee, told TheDeal.com that any new bids must exceed the valuation that the reorganization plan will put on Eddie Bauer. The valuation, said Spiegel chief financial officer James Brewster, depends “on the most recent performance of Eddie Bauer, and the performance has improved, and that should increase its valuation.”
Eddie Bauer is Spiegel’s remaining property. The company sold its titular general merchandise catalog and its Newport News women’s apparel book last year.