Eddie Bauer announces $286 million high bid from Golden Gate Capital

By Caroline Salls

Pittsburgh, July 17 - Eddie Bauer Holdings, Inc. said Golden Gate Capital has been selected as the highest bidder for substantially all of its assets, with a $286 million all-cash offer, according to a company news release.

The sale hearing is scheduled for July 22, and the company said the sale is expected to close in early August.

According to the release, Golden Gate has agreed to keep a substantial majority of Eddie Bauer's stores and employees in a newly formed going concern company.

The sale is not expected to result in any distribution to Eddie Bauer Holdings' stockholders.

As previously reported, CCMP Advisors, LLC affiliate Rainier Holdings LLC was the stalking horse bidder for the Eddie Bauer assets, with a $202.3 million offer.

Under the bidding procedures approved last month, Eddie Bauer is required to pay Rainier a $5.06 million break-up fee and reimburse up to $250,000 of its sale-related expenses since it was not the high bidder at auction.

Eddie Bauer, a Bellevue, Wash.-based specialty retailer that sells outerwear, apparel and accessories, filed for bankruptcy on June 17. Its Chapter 11 case number is 09-12099.

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