Eddie Bauer Headed for the "Big Sale" Bin?

Word came down today that Eddie Bauer might be up for sale again. Bloomberg is reporting that Eddie Bauer Holdings is in talks with potential buyers including Gordon Brothers Group and Hilco Consumer Capital. Naturally, no one has a comment just yet.

The first question would have to be "Why?" For most loyal Seattleites, Eddie Bauer died the minute they sold to Spiegel and tried to become a beacon of casual clothing. They’ve been independent since 2005 and have been working hard to get the company back to its outdoor roots, but you have to wonder if the damage has been done.

Retail, especially niche retail, is all about loyalty and a defined customer base. But the loyal EB customers are a shrinking base. They’ve lost money three years running. The stock has been hovering around the $0.25 to $0.50 range, though the current rumor has sent it all the way up to 75 cents a share.

It probably makes sense for new investors to focus on the catalog and internet side of the business. But they should beware. Shareholders rejected a sale two years ago, a near-suicidal hope that the company could recovery former glories. But the current economic downfall sent every retailer down, not just EB.

Hopefully, the EB brand will live on. It would be sad for those who found good sweaters, good deals, and good service there over the years if it suffered the same fate as Schwinn bikes, another powerful brand that lost its way. Besides, where else are we going to get our Shaker sweaters?