Eddie Bauer's latest bump in the road

Share this article:

The deal is off. Eddie Bauer Holdings Inc. said last week that an insufficient number of stockholders voted in favor of approving the company's proposed sale to Eddie B Holding Corp. at a special meeting of stockholders held on Feb. 8.

As a result, Eddie Bauer will continue to operate as a standalone publicly traded entity and its board of directors will evaluate appropriate next steps for the company.

In November, Eddie B Holding Corp.,which is owned by Sun Capital Partners Inc. and Golden Gate Capital, agreed to acquire Eddie Bauer Holdings, Redmond, WA,  for $9.25 per share in cash, or about $614 million. Eddie Bauer's board of directors approved the deal. The merchant had only recently become an independent for the first time in 35 years after emerging from Spiegel Inc.'s Chapter 11 reorganization in June 2005.

"Eddie Bauer has probably withstood more problems, redirections, re-strategies, re-managements and rearrangements than any other direct marketing company, but it remains a quality property," said Don Libey, president of consultancy Libey Inc., Des Moines, IA, at the time of the announcement of the Sun Capital/Golden Gate acquisition.

Golden Gate and Sun Capital's retail expertise was expected to provide some needed direction to Eddie Bauer.

In January, the company reported that for the fiscal year ended Dec. 30, net merchandise sales declined 4.5 percent totaling $957 million. Comparable stores sales for fiscal 2006 decline 2 percent and sales from the company's direct channel decreased by 4.4 percent.

Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Multichannel Marketing

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Multichannel Marketing

Complexity's What Marketers Got, Simplicity's What They Want

Complexity's What Marketers Got, Simplicity's What They Want

Customer insights managers want campaign management tools to remain easy to use, even as they up their games with multi-layered campaigns.

Wine.com Uncorks New Digital Marketing Opportunities

Wine.com Uncorks New Digital Marketing Opportunities

The online wine retailer's strategy incorporates different flavors and depths.

93% of Companies Are Ineffective at Cross-Channel Marketing

93% of Companies Are Ineffective at Cross-Channel Marketing ...

Companies point to a lack of resources as the most common reason for lackluster marketing integration, a study says.