The buzz this week has been that Eddie Bauer Holdings is close to filing for bankruptcy if it can’t sell itself or restructure.
Liquidation firms have reportedly been sizing up the apparel cataloger/retailer for weeks, including Hilco Consumer Capital and Gordon Brothers—the firms that bought Sharper Image out of bankruptcy in May 2008.

Eddie Bauer, which recorded a net loss of $165.5 million for fiscal year 2008, said in March it has $193 million in outstanding debt, and that it was trying to amend the loan terms.

The Bellevue, WA-based company generated $971.3 million in sales for fiscal 2008, down from $989.4 million in 2007. Direct sales slipped 1.3%, from $277.9 million in 2007 to $274.2 million.

The merchant, which has tried to reinvent itself several times in the past decade, has recently been focusing on returning its rugged apparel roots. But given its debt load and the state of the general economy, it may have been too late for a turnaround.

Eddie Bauer has been an independent company in 2005; former parent Spiegel had filed for bankruptcy protection in 2003. (Before Spiegel, Eddie Bauer had been owned by General Mills, from 1971 to 1988.)

Golden Gate Capital and Sun Capital in November 2006 agreed to buy Eddie Bauer for $614 million. But Eddie Bauer shareholders in March 2007 voted against the proposed sale because the price — $9.25 per share — was too low. That’s about $9 more than its share price today.

Brant Publications Launches MODERN Magazine

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MODERN Magazine, a new publication that will examine 20th and 21st century design, has made its debut with its premier issue in June. Published by Brant Publications, publishers of Art in America, Interview and The Magazine Antiques, MODERN will cover all facets of collecting modern design, from aesthetics to market conditions, emphasizing information important for any serious collector, as well as material appealing to the design enthusiast.

Former editor of House & Garden Gregory Cerio will serve as editor in chief. MODERN launches as a quarterly magazine, and will be published three times in 2009 -- in May, September and December. It debuts with 118 pages, including 60 pages of editorial and 58 pages of advertising. Initially a perfect-bound supplement with a distribution of 50,000, it will be mailed to subscribers of The Magazine Antiques and Art in America in select regions, and will be poly-bagged with the June issue of Art in America on newsstands.

"The interest from the international design market has been tremendous with advertisers from six countries represented in this premier issue," said Publisher Jennifer Roberts. "Clients were quick to realize that Brant Publications has the unique ability to deliver a large distribution to targeted high-income collectors in this area of interest."

MODERN Magazine is now available on U.S. newsstands with a cover price of $8.00. Annual subscriptions are $19.99.
 

Transcontinental Announces Another 250 Job Cuts After $144.3 Million Loss

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Montreal-based printer and newspaper publisher Transcontinental Inc. announced yesterday that it will be cutting another 250 jobs in addition to the 1,500 positions eliminated in a major restructuring announced back in February. The company also said it posted a $144.3 million loss for the second quarter of this year as a result of the restructuring and other charges.

Still, Transcontinental President and CEO Francis Olivier remains upbeat despite the sizable loss, noting that the 1,750 positions being eliminated this year (about 13 percent of the company's workforce) will translate into about $100 million in annual savings.

"In the current context, excluding unusual items, these are encouraging results that show an improvement over the first quarter,” said Olivier. “We reacted quickly and adjusted our production capacity and costs to the demand in each of our markets. … After three quarters of adjustment and refocusing, and assuming no further deterioration in the present economic situation and the execution of our rationalization plan, we are confident that our profitability will continue to improve in coming quarters."

Adjusted operating income before amortization for the second quarter was down 10 percent compared to a decline of 29 percent in the first quarter.

"The year 2009 will be one of transition for Transcontinental and we will come out of it stronger and better positioned in each of our markets to take advantage of the economic recovery," Olivier said.

He added that Transcontinental's U.S.-based direct mail operations "by far have been hit the hardest, with their revenues down by about 50 percent in the second quarter compared to 30 percent in the first quarter."
  

Grim forecast for Canadian paper industry

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OTTAWA, June 11 (UPI) -- Canada's paper industry can expect to lose at least half a billion dollars this year, an independent Canadian research group in Ottawa forecast Thursday.

The not-for-profit Conference Board of Canada cast gloom on the industry, saying 2009 would be its seventh consecutive years of losses with a decline in production of 13 percent this year for a cumulative loss of 40 percent since 2005.

Board economist Valerie Poulin said the ongoing recession wasn't helping the industry's efforts at restructuring.

"With increased foreign competition and demand for paper declining quickly in North America, more companies are expected to go out of business and those that survive will have to curtail their production and keep finding ways to boost productivity," Poulin wrote.

The forecast also predicted job losses in the paper industry would surpass 8,000 this year and next.

The board forecast came out as the Globe and Mail reported the Canadian government was assembling a $1 billion aid package for the industry. Sources told the newspaper it wasn't yet known when the plan would be announced.

  

 

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