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Eddie Bauer receives court approval of Golden Gate offer

Eddie Bauer Holdings has received Bankruptcy Court approval to proceed with the sale of its business to Golden Gate Capital for USD286m in cash.

Eddie Bauer Holdings has received Bankruptcy Court approval to proceed with the sale of its business to Golden Gate Capital for USD286m in cash.

With the court’s approval, the transaction is on track to close in early August.

Golden Gate is a private equity firm with approximately USD9bn of assets under management and expertise in multi-channel specialty retail.

The sale will enable Eddie Bauer to emerge quickly from bankruptcy as a new company with a well-capitalized partner, a substantially lower cost structure, little or no long-term debt and a much stronger balance sheet.

Golden Gate has indicated its support for Eddie Bauer’s management team and its strategy, including operating as a tri-channel retailer with an extensive store fleet.

Golden Gate plans to maintain the substantial majority of Eddie Bauer’s stores and employees in the newly formed company. In addition, under the terms of the transaction, Eddie Bauer gift cards will be honoured in the ordinary course of business.

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