Spiegel Puts Eddie Bauer Up for Sale
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Retailer Spiegel Inc. on Tuesday put its Eddie Bauer unit up for sale, and investment bankers said the profitable chain could fetch as much as $800 million.
Spiegel, which is operating under protection from creditors under Chapter 11 of the U.S. Bankruptcy Code, also disclosed that it agreed to sell substantially all the assets of its Newport News catalog business to Pangea Holdings Ltd. for $25 million in cash plus assumption of certain liabilities.
In addition, Spiegel, based in Downers Grove, Ill., said it was in talks with an undisclosed party to sell its namesake catalog.
The sale of Newport News, a women’s apparel unit, is subject to Bankruptcy Court approval; a court hearing is expected in mid-April, Spiegel said.
Spiegel has struggled with falling sales and credit-card defaults that led it to file for Chapter 11 protection last year.
Eddie Bauer has more than 400 stores nationwide and a growing online business, with about $1.3 billion in annual sales, according to sources.
Shares of Spiegel rose 3 cents to 17 cents in over-the-counter trading.
Bloomberg News and Reuters were used in compiling this report.
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