Chapter 11 Jul23

7-23-09

SEATTLE, July 22 /PRNewswire-FirstCall/ -- Eddie Bauer Holdings, Inc. (Pink Sheets: EBHIQ - News) announced today that it has received Bankruptcy Court approval to proceed with the sale of its business to Golden Gate Capital for $286 million in cash. With the Court's approval, the transaction is on track to close in early August.
Golden Gate is a premier private equity firm with approximately $9 billion of assets under management and deep expertise in multi-channel specialty retail. The sale will enable Eddie Bauer to emerge quickly from bankruptcy as a new company positioned for success, 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 honored in the ordinary course of business.
Additional information on the bankruptcy and sale process is available on the Company's website at http://investors.eddiebauer.com.
About Golden Gate Capital
Golden Gate Capital is a San Francisco-based private equity investment firm with approximately $9 billion of assets under management. The firm's charter is to partner with world-class management teams to make equity investments in situations where there is a demonstrable opportunity to significantly enhance a company's value. The principals of Golden Gate have a long and successful history of investing with management partners across a wide range of industries and transaction types, including corporate divestitures, leveraged buyouts, and recapitalizations. Golden Gate has a deep experience base in specialty retailing and direct marketing including recent investments in Express, J. Jill, Blair, Haband and Norm Thompson, among others. For additional information, visit www.goldengatecap.com.