Customers urged to use gift cards as major brand faces closure

Shoppers must act immediately as gift cards are poised to become worthless within weeks following a major retailer’s bankruptcy filing. Eddie Bauer customers need to move quickly or risk forfeiting their money.

The retailer is filing for bankruptcy – meaning Eddie Bauer customers have less than one month to redeem their gift cards and loyalty scheme points. Rewards and gift cards obtained through Eddie Bauer’s Adventure Points scheme will no longer be honoured after March 12, court documents reveal. Catalyst Brands, which operates Eddie Bauer’s outlets, is seeking to sell the business whilst it closes down its Canadian and American branches, reports BirminghamLive.

All purchases at those sites are final – meaning refunds will not be permitted on items bought during the closure. Eddie Bauer LLC runs approximately 180 branches across America and Canada.

Should the company fail to reach a sale agreement, “we will commence an orderly wind down of… store operations,” the chief executive stated. “This is not an easy decision,” Rosen said of the bankruptcy filing, telling the Associated Press.

“However, this restructuring is the best way to optimize value for the retail company’s stakeholders and also ensure Catalyst Brands remains profitable and with strong liquidity and cash flow.”

The Ontario court filings reveal 24 of the firm’s 175 North American outlets are in Canada. The company employed around 379 staff in the country when it filed for bankruptcy protection.

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The proceedings do not impact Eddie Bauer’s e-commerce and wholesale operations, which are managed by a distinct company named Outdoor 5, which did not file for creditor protection.

They also do not influence Eddie Bauer’s stores outside Canada and the U.S. as those locations are run by other licensees not involved in the bankruptcy filing.

The brand intends to conclude its physical retail presence in Massachusetts and nationwide as the outdoor clothing brand’s Chapter 11 bankruptcy process progresses.