RCS Real Estate Advisors has been retained to market a substantial portfolio of store leases operated by Eddie Bauer across the United States and Canada, as part of the retailer’s ongoing Chapter 11 bankruptcy proceedings.
The advisory firm, which previously announced its role as exclusive real estate consultant to Eddie Bauer, is now actively marketing approximately 174 store leases totaling more than 1.08 million square feet. The portfolio includes 150 locations in 40 U.S. states and 24 locations across six Canadian provinces.
For Canada’s retail real estate sector, the marketing of these locations introduces a significant block of space to the market at a time when vacancy remains uneven across regional malls and lifestyle centres.
Canadian Footprint Faces Court-Supervised Wind-Down
In February 2026, Eddie Bauer LLC, the operator of the brand’s physical stores in North America, filed for Chapter 11 bankruptcy protection in the United States and sought legal recognition in Canada. On February 19, 2026, the Ontario Superior Court recognized the U.S. filing, allowing liquidation and potential sale efforts to proceed under court supervision.
The Canadian fleet has been reduced significantly from historical levels. As of February 2026 24 stores remained open across the country, primarily in Ontario, with additional locations in British Columbia, Alberta, Quebec and other provinces.
Liquidation and going-out-of-business sales began in early February at nearly all Canadian locations, with many stores offering discounts of 60 percent or more. March 12, 2026 has been set as a critical deadline for customers to redeem gift cards and Adventure Points in physical stores. After that date, those benefits are expected to become void in-store.
While the retail store network is undergoing a wind-down process, a sale of some or all locations remains possible, depending on buyer interest and court approval.
A Rare Opportunity for Retailers and Landlords
According to RCS, the portfolio of Eddie Bauer store leases in Canada and the United States offers a range of footprints in established malls, lifestyle centres and high-traffic retail corridors. The stores average approximately 6,300 square feet and are often positioned alongside national anchors and strong co-tenants.
“As part of the Chapter 11 process, we are focused on maximizing value and identifying opportunities for landlords, retailers and other uses seeking quality retail space in proven trade areas,” said Ivan Friedman, President and CEO of RCS Real Estate Advisors. “This portfolio represents a rare opportunity to secure legacy retail locations in established centers nationwide. Our team is actively engaging the market to drive competitive interest and efficient lease dispositions.”
Third Bankruptcy in Two Decades
The current filing marks the third time in just over 20 years that the 106-year-old brand has faced insolvency proceedings, following earlier restructurings in 2003 and 2009. However, it is important to distinguish between the retail store operator and the intellectual property behind the brand.
The bankruptcy was filed by Eddie Bauer LLC, the entity operating the physical store fleet in North America, under its parent holding company Catalyst Brands. Catalyst Brands is a joint venture formed in 2025 by JCPenney and SPARC Group.
Total reported debt stands at approximately $1.7 billion. The filing cites inflation, tariff uncertainty, supply chain pressures and declining demand for outdoor apparel compared to pandemic-era highs as primary contributing factors.
Authentic Brands Group owns the Eddie Bauer intellectual property and brand name. It is not part of the bankruptcy filing.
What Remains Operational
Although the brick-and-mortar store network is under restructuring, other parts of the business remain operational.
The Eddie Bauer e-commerce platform is operated by Outdoor 5, LLC, a separate entity that did not file for bankruptcy protection. Online sales are expected to continue without interruption. In addition, wholesale distribution through third-party retailers such as Costco and Kohl’s is managed under the Outdoor 5 license and remains unaffected.
International locations, including stores in Japan and other markets outside North America, are operated by separate licensees and continue to trade.
This distinction is critical for Canadian consumers and landlords alike. While physical stores may close if a buyer is not secured by mid-March 2026, the brand itself is not disappearing from the market.
Implications for Canadian Retail Real Estate
The marketing of Eddie Bauer store leases in Canada comes at a time when the retail sector is experiencing mixed performance. In many top-tier malls, vacancy remains tight and replacement tenants are waiting in the wings. In secondary markets, however, large-format apparel vacancies can linger.
The average 6,300-square-foot footprint aligns with demand from value-oriented fashion chains, specialty outdoor brands, health and wellness concepts, and even select food and beverage operators looking to backfill apparel space.
For landlords, the Chapter 11 process also allows for lease assignments subject to court approval, which can facilitate faster transitions than traditional vacancy cycles. RCS will oversee marketing efforts, lease assignments and related negotiations with Eddie Bauer and its advisor.
Retailers, landlords and brokers seeking more information have been directed to contact Ivan L. Friedman, President and CEO; Spence Mehl, Partner; Ed Coury, Senior Managing Director; and Moe Puri, Managing Director at RCS Real Estate Advisors.
A Turning Point for a Legacy Brand
Founded more than a century ago, Eddie Bauer built its reputation as an outdoor apparel and equipment specialist. Over time, the brand evolved into a mall-based lifestyle retailer, expanding aggressively across North America.
The current restructuring reflects broader shifts in consumer behaviour and category demand. During the pandemic, outdoor and active apparel experienced a surge in interest. As normal travel, office work and discretionary spending patterns resumed, demand moderated.
In Canada, the outcome of this process will determine whether any Eddie Bauer physical stores survive under new ownership. If a buyer emerges, some locations could continue operating. If not, the country’s remaining fleet will close, adding another legacy apparel name to the list of recent retail exits.
For now, the focus remains on the orderly marketing and disposition of Eddie Bauer store leases in Canada and across the United States. The coming weeks will be pivotal in shaping the next chapter for both the retailer’s physical footprint and the landlords that house it.
