The retailer is filing for bankruptcy and customers have just under one month to use their gift cards and loyalty programme points before they expire
Customers must move quickly as gift cards are about to become worthless within weeks following a major retailer’s bankruptcy announcement. Eddie Bauer shoppers need to act fast or face losing their money.
The retailer is entering bankruptcy proceedings – giving Eddie Bauer customers less than a month to redeem their gift cards and loyalty scheme points, reports Birmingham Live.
Rewards and gift cards accumulated through Eddie Bauer’s Adventure Points scheme will no longer be valid after March 12, according to court filings. Catalyst Brands, which operates Eddie Bauer’s outlets, is attempting to offload the business whilst closing down its Canadian and American branches.
All purchases at these locations are final – with no returns permitted on goods bought during the closure period. Eddie Bauer LLC runs approximately 180 sites throughout the US and Canada.
Should the firm fail to secure a buyer, “we will commence an orderly wind down of… store operations,” the chief executive said. “This is not an easy decision,” Rosen acknowledged regarding the bankruptcy filing, speaking to the Associated Press.
“However, this restructuring is the best way to optimize value for the retail company’s stakeholders and also ensure Catalyst Brands remains profitable and with strong liquidity and cash flow.”
Ontario court documents reveal 24 of the company’s 175 North American outlets are located in Canada. The firm employed roughly 379 staff in the country when it sought bankruptcy protection.
The filing does not impact Eddie Bauer’s online retail and wholesale arms, which are operated by a separate entity known as Outdoor 5, which has not sought creditor protection.
Similarly unaffected are Eddie Bauer’s outlets beyond Canada and the US, as those locations are managed by other licensees who are not part of the bankruptcy proceedings.
The brand is set to close all its physical shops in Massachusetts and throughout the country as the outdoor clothing retailer’s Chapter 11 bankruptcy process moves forward.
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