Eddie Bauer LLC

Representation of the creditors’ committee in the chapter 11 cases of Eddie Bauer LLC and its debtor affiliates in the District of New Jersey. As of the bankruptcy filing, this clothing company, with a storied history spanning more than 100 years, had 175 retail locations across 40 states and in Canada. Under the debtors’ proposed chapter 11 plan, general unsecured creditors stood to recover essentially nothing and possibly be subject to preference clawback claims by the estates. With the firm’s assistance and efforts—including objections to the debtors’ cash collateral motion and the debtors’ plan—the committee was successful in negotiating a settlement with the debtors and lenders, culminating in the confirmation of a new plan under which general unsecured creditors are expected to recover substantially more through a creditor trust vested with cash (a 1200% increase compared to the original proposed cash amount) and certain litigation claims.