Eddie Bauer LLC, the entity responsible for operating the brand's brick-and-mortar footprint in North America, filed for Chapter 11 bankruptcy protection on February 9, 2026, in the U.S. Bankruptcy Court for the District of New Jersey, marking the end of the brand's century-long presence as a major physical retailer. Going-out-of-business sales have already begun across all 175 locations, which are set to close by April 30 unless a buyer emerges, with the brick-and-mortar operations carrying liabilities of more than $1 billion against assets of just $100 million to $500 million. The filing cites declining sales, supply chain challenges, ongoing inflation, and tariff uncertainty as key drivers, while the brand's e-commerce and wholesale operations — now managed by a separate entity called Outdoor 5 LLC — remain unaffected. The bankruptcy marks the third filing for the storied brand, which was founded in Seattle in 1920, and follows a string of high-profile retail collapses in early 2026 including Saks Global and Francesca's.
After 25 years of operations, Houston-based women's clothing and accessories chain Francesca's filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of New Jersey, with plans to close all approximately 400 stores across 45 states and liquidate. The filing came after a convergence of factors including a 2023 data breach, failed investments in non-core brands, supply chain disruptions after two major suppliers lost their own funding, and the failure of an anticipated capital infusion in December 2025. The company carries about $30.1 million in secured debt, with between $10 million and $50 million in consolidated assets and approximately 1,000 to 5,000 creditors, including landlords Simon Property Group and Tanger Properties listed among its top 30 unsecured creditors. This marks the second bankruptcy filing in six years for Francesca's, which was previously sold out of bankruptcy in January 2021 to an affiliate of private equity firm TerraMar Capital for $18 million.
Retail industry trends for 2026 include continued AI adoption for product research and customer service, value-seeking consumers driving traffic to discount retailers, and shopping malls experiencing a rebound with renewed investment in mixed-use projects. Mall foot traffic increased in 2025, with indoor malls seeing a 1.8% rise in visits and visit durations up 3.3% compared to the first half of 2024, as traditional retail shopping centers transform into destinations for entertainment and experiences. Industry executives remain optimistic, with 96% expecting revenue growth and 81% anticipating margin expansion in 2026, despite challenges including weakened consumer buying power, high interest rates, and competition from mass merchants and value retailers. Specialty retailers face particular vulnerability in 2026 as high interest rates, shifts toward online shopping, and aggressive competition from mass merchants are predicted to push overleveraged companies into bankruptcy.