Struggling retailer Eddie Bauer has tapped RCS Real Estate Advisors to help it through its Chapter 11 bankruptcy proceeding, accompanying store closings and possible sale.
New York-based RCS on Thursday said it will serve as the exclusive real estate consultant for the outdoor apparel chain, which is headquartered in Seattle, subject to approval by a bankruptcy court. RCS said it will support the retailer in portfolio-related matters.
The operator of the Eddie Bauer chain filed for bankruptcy earlier this month and it had already started closing stores across the country. It’s part of a surge of retailers shutting brick-and-mortar locations since the start of the year.
In its filing, Eddie Bauer said it has drawn interest from two potential buyers for part of its operations and was looking to potentially use one of them as a stalking-horse bidder.
If the chain does pursue a sale as part of its Chapter 11 process, RCS said it can “negotiate potential portfolio-related modifications that may be required by buyers, including extensions, rent relief, rent holidays and other restructuring measures.”
The real estate adviser also said it will “further assess opportunities to market select leases where value may be realized as certain store locations wind down.”
Eddie Bauer operates more than 200 stores across 43 states and Canada, representing roughly 1.4 million square feet of leased retail space, according to RCS.
“When a retailer enters Chapter 11, the real estate portfolio becomes a central consideration,” RCS CEO Ivan Friedman said in a statement. “Our responsibility is to analyze the leases, advise on strategic options and help manage the portfolio in a way that protects stakeholders and maximizes any available value.”
Eddie Bauer’s brick-and-mortar retail business is part of Catalyst Brands, which was formed last year by the merger of SPARC and JCPenney, which Simon Property Group and fellow mall landlord Brookfield bought out of bankruptcy in 2020.