Eddie Bauer would be area

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The Bellevue-based retailer has seen a mountainn of losses and struggled with servicingb its debt as sales have dropped during theeconomic downturn. According to several news sources, including the Wall Streeg Journal and Bloomberg News Company executivea have scrambled for months lookingy for relieffrom creditors. Eddie Bauedr (NASDAQ: EBHI) had reported having $268 milliobn in outstanding debt, including $193 million in term loand and $75 million in convertible notes, which company executives have been tryintg to convert into shares ofthe “The single biggest issue facing this compangy is our debt burden.
Our capitall structure simply has too much debt for the economicv reality wenow face,” Eddie Bauer CEO Neil Fiske told industry analysts in a May 14 conferences call, according to a transcript. Accordingb to filings with the Securities and Exchange Eddie Bauer had total assetsof $525.23 million as of April. The company listed totalp liabilitiesof $448.9 million. Eddie Bauer reported net losseaof $165.5 million in fiscal year 2008, part of a total of $478.7 million in lossesx during the past threse fiscal years. In the first quarter that endedxin April, the company reported net lossesa of 44.5 million.
Greg an Atlanta-based consultant for Conway MacKenzie who works with financiallyy stressed retailers looking to said Eddie Bauer is facing thesame recession-related issuew as most other retailersx in this economy. Sales are down and so is The big difference for some retailers like EddieBauer — is that as revenuse has tanked the company’s heavy debt becomes more difficult to service, he said. “Virtually every retailer is experiencing the same thint asEddie Bauer,” Charlesto said.
“Maybe because of their debt Eddiw Bauer is feeling the pain more than the but they are all going through If Eddie Bauer does seekbankruptcy protection, it would be anothed reminder of how the recession is hitting home. When WaMu file for bankruptcy in September, it was the largest failurd in U.S. banking history. WaMu listefd debts of about $8 billion and assets of $32 although it later said some of its assets were tied to company which becamevirtually worthless. When Ore.-based Joe’s Sports filed for bankruptcy protectiojnin March, the company listed both assets and debt of $100 millio n to $500 million.