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Eddie Bauer Files for Bankruptcy for the Second Time
Excerpt from the InvestorGuide.com Stock of the Day on 6/18/2009

In this economy, we are well aware that many retail stores are facing intense hurdles, working hard just to keep their business afloat. Some companies have managed to surprise us, while others have folded under the pressure. Unfortunately for Eddie Bauer, they are one company that was not able to make it through unscathed; the company announced yesterday that they were filing for Chapter 11 bankruptcy. Chapter 11 bankruptcy, however, does not mean the end of the trail for this outdoor clothing chain; the company still has options, and hope for recovery. The company has overcome obstacles in the past - but can they do it again?

The company announced yesterday that they were filing for Chapter 11 bankruptcy, due to a "crushing debt burden." A number of other retail stores have already been forced to take similar action, notably including Circuit City and Linens 'N Things. And as with many other retail stores, Eddie Bauer has not been turning a profit recently, posting a loss of $44.5 million in the most recent quarter. The company announced that as of yesterday, they held $476.1 million in assets, and $426.7 million in debt. More >


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