• by Sarah Mahoney , Staff Writer, Yesterday

There has been no official confirmation from the companies involved, but industry reports say Catalyst Brands, which operates Eddie Bauer’s retail and outlet stores, is preparing a Chapter 11 bankruptcy filing. If that happens, most of the brand’s more than 200 stores are likely to close.

The potential filing comes amid a broader wave of retail retrenchment. Saks Global, which is itself in bankruptcy, recently said it would shutter 57 Saks Off Fifth locations, leaving just a dozen, along with all five remaining Last Call stores. Toys R Us Canada, owned by Putnam Investments, has also sought bankruptcy protection, closing 53 stores over the past two years, with 22 still operating.

Eddie Bauer’s situation reflects the increasingly fragmented ownership structures that now define much of U.S. retail. Authentic Brands Group owns Eddie Bauer’s intellectual property, while Catalyst runs the physical store network. Last month, Authentic shifted Eddie Bauer’s ecommerce and wholesale licenses away from Catalyst to Outdoor 5, which now oversees those businesses in the U.S. and Canada.

Industry analysts say that move likely insulated the brand’s most valuable operations ahead of a potential retail restructuring. While a buyer could emerge for a limited number of stores, reports suggest this may mark the end of Eddie Bauer as a large-scale brick-and-mortar chain.

Eddie Bauer has been through bankruptcy before. The company filed for Chapter 11 in 2009 and was later acquired by Sparc, a joint venture between Authentic and Simon Property Group. About a year ago, Catalyst was formed as a new operating entity, absorbing the brands previously held under Sparc’s portfolio, including JCPenney.

At the time of its formation, Catalyst said it generated roughly $9 billion in annual revenue and operated about 1,800 stores. Since then, pressure has mounted across its portfolio. Forever 21, another Catalyst-operated retailer whose brand is owned by Authentic, filed for bankruptcy last year.

Authentic also holds a stake in Catalyst, alongside Simon Property Group, Brookfield Corp., and Shein.

A Chapter 11 filing by Catalyst would not be expected to affect Eddie Bauer’s manufacturing, wholesale, or ecommerce businesses, nor the roughly 20 stores operating outside the U.S. and Canada.

Authentic, Catalyst, and Eddie Bauer did not respond to requests for comment.

*The headline in an earlier edition should have clarified that the bankruptcy risk refers to Catalyst Brands, Eddie Bauer's retail operator, not Authentic Brands Group, which owns the Eddie Bauer brand.