Eddie Bauer seeks Chapter 11, sale likely

SEATTLE, June 17 (UPI) -- Seattle-based clothing retailer Eddie Bauer filed for Chapter 11 bankruptcy Wednesday, claiming it had nearly $427 million in debt to contend with.

The Seattle Times said the filing was made in U.S. Bankruptcy in Delaware as the recession continued to squeeze the chain's outdoor clothing line.

Eddie Bauer laid off nearly 200 employees in January and reported a $44.5 million loss for the first quarter.

The Times said reports in the financial community indicated the company, which was founded in 1920, would be acquired in the near future by the private-equity firm CCMP Capital Advisors.