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Popular Clothing Outlet Stores Closing Due to Bankruptcy

  • Shore News Network
  • February 7, 2026
  • 12:05 pm
Popular Clothing Outlet Stores Closing Due to Bankruptcy

Neptune, NJ – Eddie Bauer’s North American retail operator, Catalyst Brands, is preparing to file for Chapter 11 bankruptcy protection in early 2026, a move expected to close nearly all of the brand’s 180 to 250 stores in the United States and Canada — including several in New Jersey, New York City, and eastern Pennsylvania.

As of February, Eddie Bauer operates about a dozen locations in the tri-state region. In New Jersey, there are nine retail and outlet stores, including sites in Paramus (Garden State Plaza), Tinton Falls (Jersey Shore Premium Outlets), Elizabeth (The Mills at Jersey Gardens), Bridgewater Commons, Rockaway Townsquare, Cherry Hill Mall, Princeton MarketFair, and Mount Laurel. Each of these stores is expected to be affected as Catalyst Brands prepares to wind down operations in the coming months.

In New York City, Eddie Bauer currently runs two stores, one in Midtown Manhattan on West 34th Street and another in Queens Center Mall, both of which are slated for potential closure under the restructuring plan. Meanwhile, eastern Pennsylvania is home to roughly five locations, including King of Prussia Mall, Philadelphia Premium Outlets in Limerick, Lehigh Valley Mall in Whitehall, Plymouth Meeting Mall, and The Crossing Premium Outlets in Tannersville. Employees at several of these stores have reported early “store closing” signage and inventory reduction sales beginning this month.

Iconic outdoor brand enters another rough climb

Founded in Seattle in 1920, Eddie Bauer became synonymous with outdoor adventure and classic American design, outfitting generations of hikers and everyday consumers. However, the company has faced years of declining sales amid fierce competition from online-first brands and changing retail habits. Catalyst Brands’ financial struggles have reportedly accelerated in recent months, leading to the decision to seek Chapter 11 protection.

The bankruptcy filing, expected by late February, will focus on shuttering all or most North American locations while transferring Eddie Bauer’s online store, manufacturing, and wholesale operations to a new licensing partner. Stores outside North America, such as those in Japan, are not expected to be affected.

  • Catalyst Brands will seek Chapter 11 protection in early 2026
  • About 15 Eddie Bauer stores in NJ, NYC, and eastern Pa are set to close
  • The brand will continue online and internationally through a new operator

Online and international business to remain active

Eddie Bauer’s e-commerce platform, which has outperformed retail sales in recent years, will remain in operation under new ownership. Analysts say the move could keep the century-old brand alive by focusing on digital and international markets while shedding its underperforming mall-based stores.

Neither Eddie Bauer nor Catalyst Brands has provided specific closing dates for regional stores, though liquidation sales are expected to accelerate throughout February and March.

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