Eddie Bauer Holdings, Inc. has completed the previously announced sale of its assets and operations to Golden Gate Capital for $286 million in cash.
The post-sale Eddie Bauer will have little or no long-term debt and a substantially lower cost structure. According to a company statement, Golden Gate Capital supports Eddie Bauer management’s strategy of refocusing the brand on its outdoor heritage.
Eddie Bauer plans to maintain the substantial majority of its stores and employees. According to Golden Gate, its ownership of Eddie Bauer provides the company with a well-capitalized parent firm that has extensive expertise in multi-channel specialty retail.
Since 2003, Golden Gate has completed 20 acquisitions of multi-channel retail and consumer products companies. In the apparel market, Eddie Bauer joins Express, J. Jill and Orchard Brands. Together these companies have sales of $4 billion, 1,250 stores representing nearly 10 million square feet of retail space and e-commerce and direct sales operations in excess of $1.5 billion.
Golden Gate also has investments in Hispanic-oriented marketing firm Lexicon Marketing; restaurant unit Macaroni Grill; and Apogee, a for-profit thrift store chain.
