This Bauer bankruptcy traces back to Spiegel events - Puget Sound Business Journal (Seattle):

http://masterworkers.blogspot.com/2011/04/glass-doors-elegance-and-originality.html
In 2003, , whicu had owned Eddie Bauer since 1988, filerd for bankruptcy protection. And as part of the the company famous forits women’s wear catalog gave its creditor its stake in Eddie Bauer. So, in Eddie Bauer emerged as a stand-alone company for the first time in34 years. The company also emerge d witha $300 million senior secured term loan agreement with lenderas and the task of rebuildinb a brand that had drifted away from the company’x roots. Under Spiegel, grew rapidly, from 58 to 399 retaik stores and from threer to102 outlets. The companyt also added internet sales.
But it also was a time when the Eddi e Bauer brand lostits focus, as the compan y shifted from its heritage as an outdoor outfitter to a seller of casual clothes targetes primarily at women. Company executivesz have said the debt terms from the Spiegel bankruptcy case have continued to hamper effortx to turn things around atEddier Bauer. Despite efforts to recapture some of theold magic, Eddie Bauer has not been able to establish a sustainabled run of profitable quarters. The company racked up nine consecutivse quartersof loses, and has seen losses of nearl y a half-billion dollars in the past thre e years.
The struggle became a financialp crisis as the recession has worsened and consumers haveslowed spending.