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Eddie Bauer completes asset sale to Golden Gate Capital

Eddie Bauer has completed the previously announced sale of its assets and operations to Golden Gate Capital for USD286m in cash.

Eddie Bauer has completed the previously announced sale of its assets and operations to Golden Gate Capital for USD286m in cash.

With the closing, Eddie Bauer will operate as a newly formed company, will continue to serve its customers as usual, and will be better positioned for future success.

Eddie Bauer will have the benefit of a much stronger balance sheet, little or no long-term debt and a substantially lower cost structure.

Golden Gate Capital has indicated its support for management and their strategy of refocusing the brand on its outdoor heritage.

Eddie Bauer plans to maintain the substantial majority of its stores and employees.

Neil Fiske, president and chief executive officer of Eddie Bauer, says: "We are delighted to have Golden Gate Capital as our partner in building Eddie Bauer as a great American brand. Golden Gate has a proven track record and knows our industry well. We will benefit immensely from the value and capability they will bring to Eddie Bauer. With key new product launches slated for Fall and Holiday, a healthy balance sheet and a lower cost structure, we will be well positioned to grow Eddie Bauer. This is an excellent result for our people, our customers, our business partners and the communities we serve. We look forward to an exciting new chapter in the Eddie Bauer story."

Stefan Kaluzny, managing director of Golden Gate Capital, says: "We are very pleased to acquire the Eddie Bauer operations and to partner with the existing management team in continuing to restore and rebuild this iconic brand. Eddie Bauer has extraordinary assets in the form of its management team, its brand and its nearly century old relationship with consumers in North America and abroad. The Eddie Bauer name stands for quality, value and the spirit of the American outdoors. We are committed to supporting the Eddie Bauer management team’s relentless pursuit of those attributes on behalf of its millions of loyal customers."

Established in 1920 in Seattle, Eddie Bauer is a specialty retailer that sells outerwear, apparel and accessories for the active outdoor lifestyle. Eddie Bauer products are available at 371 stores throughout the US and Canada, through catalogue sales and online. It participates in a joint venture in Japan and has licensing agreements across a variety of product categories.

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