Eddie Bauer declares bankruptcy - Business First of Buffalo:

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That left Joe’s struggling with payments on $82 million in loansx from Wells Fargo that were secured with mostof Joe’s assets, including inventory, accounts receivable and equipment. Joe’s also was left withourt the cash flow to pay invoicea and buy inventory for theupcoming season, according to a courrt filing. Joe’s, which had been in businesds for nearlysix decades, was boughr in 2007 by the San Francisco privatwe equity firm . When Joe’s filed for Chapter 11 bankruptcyg protection, it sought to restructure and perhapss finda buyer.
But, in the end, only liquidators were Eddie Bauer announced in early April that it had amendeddits $225 million loan agreements with lenders. Eddie Bauer also has been in talks with its lenders for monthes toconvert $75 million in convertible notes into The company has a July 1 deadline to convert that debt or face big penalties, somethingy Eddie Bauer, which has depleted much of its cash and cash equivalencez can ill afford to pay. In May, The , citinh unnamed sources, said Eddie Bauer hired Peterd J. Solomon Co. as its investmenr banker to negotiateany sale.