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 demise of both Sears and K-Mart, two historic brands that helped define American retail. It’s almost unbelievable to think that Sears, a brand that was bigger than Walmart in its day, would now be a chain with less than 10 stores ready to close once leases and other obligations are worked out.
One of the last Sears operated in a mall near our house, and had limited merchandise, a small number of workers, and was kept open only so that its owner could have leverage in transferring his lease to the Dick’s Sporting Goods that 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 finds itself fighting for survival in Chapter 11 bankruptcy, and several legacy brands have closed their doors.
Now, another famous brand, Eddie Bauer, seems ready to file for Chapter 11 bankruptcy and close its fleet of more than 200 retail locations, according to a report from Women’s Wear Daily (WWD).
Eddie Bauer has filed for Chapter 11 bankruptcy twice before.
Its first failure 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 the restructuring, Eddie Bauer emerged from Spiegel’s bankruptcy in June 2005 as a stand-alone company called Eddie Bauer Holdings, Inc. Source: SEC filings
Its second presentation took place in 2009.
Above 17 June 2009presented Eddie Bauer Holdings Inc Chapter 11 bankruptcy protection alone due to heavy debt, declining sales, and recession-era pressures.
At the time, the company had hundreds of retail stores and debts that strained its finances.
During the bankruptcy process, Eddie Bauer obtained financing to continue operations while searching for a buyer. Source: The New York Times
Phil July 2009Eddie Bauer was acquired from bankruptcy from a private equity firm Golden Gate Capital in a bankruptcy auction for approx $286 millionaccording to a Golden Gate Capital press release.
Now, the company is preparing to file for Chapter 11 bankruptcy again and has plans to close all of its stores.
“Eddie Bauer is preparing to file for Chapter 11 bankruptcy, with sources claiming the retailer is closing about 200 locations across North America,” according to a Jan. 29 WWD story.
The chain will exit the US retail market, but its stores in Japan will 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 brand’s holdings — the reported bankruptcy of Eddie Bauer leaves the manufacturing, wholesale operations in North America currently in North America. transition process beyond Catalyst Brands for a new license,” WWD’s Jean E. Palmieri reported.
This would mean the end of Eddie Bauer as a retail chain, but the brand would continue to exist and be sold elsewhere.
Eddie Bauer is expected to close all its stores. Shutterstock” loading=”lazy” height=”540″ width=”960″ class=”yf-lglytj loader”/>
Eddie Bauer is expected to close all its stores. Shutterstock ·Shutterstock
GlobalData Managing Director Neil Saunders sees Eddie Bauer as a troubled brand.
“Having been to a few Eddie Bauer stores over the past year, I really struggle to understand what the point of difference is. The stores are full of product, they’re hard to shop for, and they don’t provide anywhere near enough inspiration. There’s very little storytelling. That doesn’t cut it in an outdoor category that remains soft and filled with innovative brands, like F Arcjallra, who wrote on innovative brands. RetailWire.
His Brain Trust colleague, Craig Sundstrom, blames the company’s ownership.
“Well, yeah. I think the lesson – and not learned as much againlearned – is that a brand becomes obsolete when it is part of a conglomerate … as L&T was sidelined once NRDC acquired Saks,” he posted.
More Retail:
Mohammed Amer, a retail consultant, agrees.
“Catalyst Brands takes the model of the portfolio operator to its logical end point: financial arbitrage masquerading as brand administration. The smooth migration of Eddie Bauer’s e-commerce to Outdoor 5, even when 200 stores close, is not just operational triage; it is monetizing the exit itself while throwing unprofitable physical operations,” he shared.
A number of famous brands have closed their doors since 2020 including:
Lord & Taylor: Founded in 1826one of America’s oldest stores. Filed for bankruptcy in 2020 and closed all its brick and mortar stores from 2021 amid a downturn in the pandemic era, according to Modern Retail.
Stein Mart: Founded in 1908. Filed for bankruptcy in 2020 and closed her 279 physical stores that year (the brand exists only online), CNBC reported.
Modell Sporting Goods: Founded in 1889. One of the oldest sporting goods retailers. Filed for bankruptcy and liquidated all stores in 2020 afterwards 131 yearsaccording to Modern Retail.
Joann fabrics: Founded in 1943. After several failures, closed all 800 stores by May 2025TheStreet’s Maurie Backman reported.
Aid of the Rite: Founded in 1962. Once among the largest US pharmacy chains. Filed for bankruptcy twice (2023 and 2025) and closed all remaining stores by the end of 2025according to CBS News.
Hudson’s Bay (department store division). Part of the Hudson’s Bay Companythe oldest commercial enterprise of North America. The chain of traditional stores was liquidated and all stores closed until June 1, 2025Retail Dive reported.
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This story was originally published by TheStreet on January 31, 2026, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.