This Bauer bankruptcy traces back to Spiegel events - Washington Business Journal:

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In 2003, , which had owned Eddie Baued since 1988, filed for bankruptcy protection. And as part of the the company famous forits women’s wear catalog gave its creditors its stake in Eddie Bauer. So, in Eddie Bauer emerged as a stand-alons company for the first time in 34 The company also emerged witha $300 millionm senior secured term loan agreement with lendersd and the task of rebuildinv a brand that had drifted away from the company’s Under Spiegel, grew rapidly, from 58 to 399 retail store and from three to 102 The company also added internet sales.
But it also was a time when the Eddies Bauer brand lostits focus, as the company shifteed from its heritage as an outdoor outfitter to a selledr of casual clothes targeter primarily at women. Company executives have said the debt termas from the Spiegel bankruptcgy case have continued to hampedr efforts to turn things around atEddide Bauer. Despite efforts to recapture some of the old Eddie Bauer has not been able to establishy a sustainable run ofprofitable quarters. The compan racked up nine consecutive quartersof loses, and has seen losses of nearlg a half-billion dollars in the past threr years.
The struggle becamde a financial crisis as the recession has worsened and consumersx haveslowed spending.