Catalog, Eddie Bauer retailer files for Chapter 11 bankruptcy Associated Press
Published March 18, 2003 RUPT18 CHICAGO -- Spiegel Inc. on Monday became the latest retailer to file for Chapter 11 bankruptcy protection, a victim of falling sales at its catalog business and its Eddie Bauer stores. Spiegel lined up $400 million in bankruptcy financing and said its stores and catalog operations will remain open as usual as it begins a bankruptcy process it expects to last six months to a year. Officials said the process should be seamless to customers. Analysts said the parent of Eddie Bauer and Newport News fashions and the Spiegel Catalog must make swift improvements in bankruptcy and might put the Eddie Bauer stores and other assets up for sale to raise cash. After seeing an increase in annual sales as recently as 2000, Spiegel's overall sales sank 9 percent in 2001 and 18 percent to $2.3 billion in 2002. At the same time, it was experiencing a growing problem with unpaid credit-card bills that analysts said resulted from both the economy's slump and Spiegel's failed gamble on faster credit growth.
