The retail market has no nostalgia. Just because a brand has been around for decades, or even a century, doesn’t guarantee it will continue beyond 2026.
In the coming year, we may see the death of both Sears and K-Mart, two historic brands that helped define American retail. It’s almost unfathomable to think that Sears, a brand that was bigger than Walmart in its day, would now be a chain with fewer than 10 stores poised to close once leases and other obligations are settled.
One of the last Sears operated in a strip mall near our house had limited merchandise, few workers, and was only kept open so that its owner could have leverage in transferring its lease to Dick’s Sporting Goods who took over the place. While it remained open, it was a sad reminder of what the chain once was.
Past prominence, however, does not guarantee anything in the present. That’s why Saks Global is fighting for survival in Chapter 11 bankruptcy, and several legacy brands have closed their doors.
Now, another famous brand, Eddie Bauer, appears ready to file for Chapter 11 bankruptcy and close its fleet of more than 200 retail locations, according to a report by Women’s Wear Daily (WWD).
Eddie Bauer filed for bankruptcy twice before Chapter 11.
The first bankruptcy occurred in 2003.
Eddie Bauer’s parent company at the time, Spiegel Inc.filed for Chapter 11 bankruptcy in March 2003.
Spiegel’s financial troubles led to the closing of many Eddie Bauer stores.
After restructuring, Eddie Bauer emerged from Spiegel’s bankruptcy in June 2005 as an independent company called Eddie Bauer Holdings, Inc. Source: SEC documents
Its second submission took place in 2009.
On June 17, 2009requested Eddie Bauer Holdings Inc Chapter 11 bankruptcy protection on its own due to heavy debt, declining sales and recessionary pressures.
At the time, the company had hundreds of retail stores and debt that was straining its finances.
During the bankruptcy process, Eddie Bauer secured financing to continue operations while it searched for a buyer. Source: The New York Times
In July 2009it was Eddie Bauer acquired after bankruptcy by the private equity firm The Golden Gate capital at a bankruptcy auction for approx 286 million dollarsaccording to a Golden Gate Capital press release.
Now, the company is preparing to file for Chapter 11 bankruptcy again and plans to close all of its stores.
“Eddie Bauer is preparing to file for Chapter 11 bankruptcy, with sources saying the retailer would close about 200 locations in North America,” according to a Jan. 29 WWD article.
The chain would exit the US retail market, but its stores in Japan would not be affected. It’s a complicated transaction because of the company’s ownership, RetailWire reported.
“Following the formation of Catalyst Brands last year (by Simon Property Group, Brookfield Corp., Authentic Brands Group and Shein) — with Eddie Bauer, Aeropostale, Lucky Brand, Brooks Brothers, Nautica and JCPenney making up the brands — the reported bankruptcy of Eddie Bauer would leave the manufacturing, North American wholesale operations and e-commerce operations currently in North America transitioning from Catalyst Brands to a new licensee,” reported Jean E. Palmieri of WWD.
That would mean the end of Eddie Bauer as a retail chain, but the brand would continue to exist and be sold elsewhere.
Eddie Bauer will close all of its retail stores. Shutterstock” loading=”lazy” height=”540″ width=”960″ class=”yf-lglytj loader”/>
Eddie Bauer is expected to close all of its retail stores. Shutterstock ·Shutterstock
GlobalData CEO Neil Saunders sees Eddie Bauer as a troubled brand.
“Having been to a few Eddie Bauer stores over the past year, I’m really struggling to understand what the difference is. The stores are cluttered with product, hard to shop, and don’t offer enough inspiration. There’s very little storytelling. That doesn’t cut it in an outdoor category that remains soft and is filled with innovative brands like Arcjallraven and F. RetailWire.”
His Brain Trust colleague Craig Sundstrom blames the company’s ownership.
“Well, yes. I think the lesson—and it hasn’t been learned as much as relearned – is that a brand becomes expendable when it is part of a conglomerate…just like L&T was abandoned once NRDC acquired Saks,” he posted.
More retail:
Mohammed Amer, a retail consultant, agrees.
“Catalyst Brands takes the portfolio operator model to its logical endpoint: financial arbitrage masquerading as brand management. Eddie Bauer’s seamless e-commerce migration to Outdoor 5, even as 200 stores close, isn’t just operational triage; it’s monetizing the exit itself while shedding unprofitable brick-and-mortar operations,” he said.
A number of famous brands have closed their doors since 2020, including:
Lord and Taylor: Founded in 1826one of America’s oldest department stores. He filed for bankruptcy in 2020 and closed all its brick and mortar stores 2021 against the background of the decline during the pandemic, according to Modern Retail.
Stein Mart: Founded in 1908. He filed for bankruptcy in 2020 and closed his 279 physical stores that year (the brand exists only online), CNBC reported.
Sports articles Modell: Founded in 1889. One of the oldest sporting goods retailers. He filed for bankruptcy and liquidated all the stores in 2020 after 131 yearsaccording to Modern Retail.
Joann Fabrics: Founded in 1943. After several bankruptcies, has closed all of its more than 800 stores by May 2025TheStreet’s Maurie Backman reported.
Rite Aid: Founded in 1962. Once among the largest drugstore chains in the US. He filed for bankruptcy twice (2023 and 2025) and closed all remaining stores by the end of 2025according to CBS News.
Hudson’s Bay (Stores Division). Part of Hudson’s Bay Companythe oldest commercial enterprise in North America. The chain of traditional stores was also liquidated all stores closed until June 1, 2025reported Retail Dive.
Related: Costco Adds 3 Key New Member Perks
This story was originally published by TheStreet on January 31, 2026, where it first appeared in the Retail section. Add TheStreet as a favorite source by clicking here.
