Eddie Bauer stores could be next on the chopping block. 

Catalyst Brands, which owns the license to operate Eddie Bauer stores across North America, is preparing to file for bankruptcy protection, a source close to the matter told Fast Company.

The filing could cause the company to shutter all of its North American stores, the person said. 

Catalyst Brands also oversees Lucky Brand, Aéropostale, Nautica, Brooks Brothers and JCPenney, and has not yet confirmed the details of the filing. WWD reported the potential filing last week, noting that it could happen sometime this month. 

None of the other brands under Catalyst will be affected by the potential filing.

Eddie Bauer’s corporate parent, Catalyst Brands, also oversees Lucky Brand, Aéropostale, Nautica, Brooks Brothers and JCPenney. (Getty Images)

The company operates mainly across the U.S. and Canada with about 180 locations. There are 20 international locations, according to reports. 

FOX Business reached out to Catalyst Brands for comment. 

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Catalyst Brands LLC emerged as a new retail holding company in 2025 through a merger between JCPenney and SPARC Group, a multi-brand operator that ran several clothing brands. 

An Eddie Bauer store is seen on Feb. 3, 2026, in Round Rock, Texas.  (Brandon Bell/Getty Images)

The newly formed company brought together operations, distribution networks, management and several brands under one roof. 

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However, those brands have gone through their own obstacles. Prior to the merger, JCPenney contended with slowing foot traffic and lackluster sales for years, causing it to file for bankruptcy protection at the height of the pandemic. It emerged from bankruptcy in 2020 as a private company after being acquired by Simon Property Group and Brookfield Asset Management Inc. 

An Eddie Bauer store is seen on Feb. 3, 2026, in Round Rock, Texas.  (Brandon Bell/Getty Images)

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JCPenney last year continued to shutter a handful of its stores in recent years as it struggled to keep pace with rapidly changing market conditions.