Eddie Bauer Files Chapter 11

Bankruptcy rumors prove true

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    Bankruptcy rumors have been surfacing for awhile about Eddie Bauer stores, and now it appears to be coming true.

    Due to plummeting sales, bankruptcy rumors have been surfacing for awhile about Eddie Bauer Holdings Inc.

    True to the rumors, the Bellevue, Wash.-based company filed for Chapter 11 bankruptcy protection Wednesday the Chicago Tribune reported.

    According to the Tribune, the clothing retailer reported a loss for the first quarter of $44.5 million.  When it filed for bankruptcy, the company had $476.1 million in total assets and $426.7 million in total debt.

    The company is likely to be acquired by private-equity company CCMP Capital Advisors.

    This comes after another well known clothing retailer, Filene's Basement, filed for Chapter 11 and was bought out by Men's Wearhouse over week ago.