Eddie Bauer expected to close all stores in North America as corporate parent eyes bankruptcy

By Daniella Genovese
Published  February 4, 2026 10:29am PST
FOX 13 Seattle
Loading Video…

This browser does not support the Video element.

The Brief

    • Catalyst Brands, which operates Eddie Bauer stores in North America, is preparing to file for bankruptcy protection, a move that could result in all Eddie Bauer U.S. and Canadian locations shutting down.
    • Catalyst, formed in 2025 from the JCPenney–SPARC Group merger, also oversees brands like Lucky Brand, Aéropostale, Nautica and Brooks Brothers, but those brands are not expected to be affected by the filing.
    • The potential bankruptcy follows ongoing challenges across Catalyst’s portfolio, including JCPenney’s long-running struggles with declining foot traffic, prior bankruptcy during the pandemic, and continued store closures.

Eddie Bauer stores could be next on the chopping block.

Catalyst Brands, which owns the license to operate Eddie Bauer stores across North America, is preparing to file for bankruptcy protection, a source close to the matter told Fast Company.

The filing could cause the company to shutter all of its North American stores, the person said.

An Eddie Bauer store is seen on February 03, 2026 in Round Rock, Texas. Eddie Bauer is expected to close all of its North America stores after filing for bankruptcy. (Brandon Bell/Getty Images)

Catalyst Brands also oversees Lucky Brand, Aéropostale, Nautica, Brooks Brothers and JCPenney, and has not yet confirmed the details of the filing. WWD reported the potential filing last week, noting that it could happen sometime this month.

None of the other brands under Catalyst will be affected by the potential filing.

The company operates mainly across the U.S. and Canada with about 180 locations. There are 20 international locations, according to reports.

FOX Business reached out to Catalyst Brands for comment.

Catalyst Brands LLC emerged as a new retail holding company in 2025 through a merger between JCPenney and SPARC Group, a multi-brand operator that ran several clothing brands.

The newly formed company brought together operations, distribution networks, management and several brands under one roof.

However, those brands have gone through their own obstacles. Prior to the merger, JCPenney contended with slowing foot traffic and lackluster sales for years, causing it to file for bankruptcy protection at the height of the pandemic. It emerged from bankruptcy in 2020 as a private company after being acquired by Simon Property Group and Brookfield Asset Management Inc.

JCPenney last year continued to shutter a handful of its stores in recent years as it struggled to keep pace with rapidly changing market conditions.

Get more from FOX Business.

MORE NEWS FROM FOX 13 SEATTLE

Cantwell urges DOJ to stop pressuring states like WA for voter registration data

Gunfight kills 1, injures 3 in Seattle's 'Sinking Ship' garage

T-Mobile to lay off hundreds of WA employees across the state

Reports: Seattle Seahawks to go up for sale after Super Bowl 2026

Burglars steal $50K worth of Seahawks merch from Seattle store ahead of Super Bowl

To get the best local news, weather and sports in Seattle for free, sign up for the daily FOX Seattle Newsletter.

Download the free FOX LOCAL app for mobile in the Apple App Store or Google Play Store for live Seattle news, top stories, weather updates and more local and national news.

The Source: Information in this story came from Catalyst Brands and FOX Business.

BusinessSeattleNews