Spiegel Keeps Bauer for NowAfter months of press reports that a buyer for Eddie Bauer would soon be announced, a Spiegel Inc. spokesman said yesterday that it will file a reorganization plan for Eddie Bauer in the first quarter or possibly sooner.
"We believe that the values we've gotten offered so far are not reflective of what the value of Eddie Bauer currently is," said Jim Brewster, Spiegel's senior vice president and chief financial officer, on why Eddie Bauer hasn't been sold.
However, he didn't eliminate the possibility that Eddie Bauer could still be acquired if the right offer materialized.
The decision to reorganize came after Spiegel and its creditors met Nov. 4.
Bauer was put up for sale in April to help repay Spiegel's creditors, who are owed about $1.5 billion, according to published reports. Eddie Bauer was expected to sell for nearly $1 billion, but offers for the multichannel marketer of outdoors apparel are believed to have been closer to $600 million.