Eddie Bauer is closing all 28 Canadian stores under Chapter 11 bankruptcy. This guide covers your severance rights, WEPP claims, and next steps for retail workers.
Eddie Bauer, the 106-year-old outdoor apparel retailer, is preparing to file for Chapter 11 bankruptcy and close all of its approximately 200 North American stores, including 28 locations across Canada. The company currently operates stores in Ontario, British Columbia, Alberta, Quebec, Nova Scotia, Manitoba, Saskatchewan, and New Brunswick. According to LinkedIn, Eddie Bauer employs more than 260 people in Canada. If you work at an Eddie Bauer store in Canada, you need to understand your rights now because bankruptcy changes everything about how severance works.
In a bankruptcy, employees become unsecured creditors. This is the worst outcome for workers because secured creditors (banks, landlords) get paid first. The federal Wage Earner Protection Program (WEPP) may provide some compensation, but it's capped at approximately $8,844. Don't wait to understand your options.
Eddie Bauer is owned by Catalyst Brands under license from Authentic Brands Group. The bankruptcy filing applies specifically to the store-operating entity, not the brand itself. E-commerce, wholesale, and manufacturing operations will continue under a new licensee called Outdoor 5.
What's happening:
Why this is happening:
Who is affected:
This is Eddie Bauer's third bankruptcy. In 2003, the company filed under parent Spiegel Inc. In 2009, Eddie Bauer Holdings filed for Chapter 11 and was acquired by Golden Gate Capital for $286 million. This pattern of restructuring through bankruptcy is unfortunately common in retail.
If you work at Eddie Bauer in Canada, take these steps immediately:
Confirm your employment status:
Understand your position in the bankruptcy:
Document everything:
Do not sign any documents releasing your claims without understanding what you're giving up. In bankruptcy situations, employers sometimes ask employees to sign releases in exchange for partial payment. Speak with an employment lawyer before signing anything.
Bankruptcy changes the rules for severance in Canada. Here's what you need to know:
Provincial Employment Standards still apply:
Under Ontario's Employment Standards Act (ESA), for example, employees are entitled to:
However, in bankruptcy, these entitlements become claims against the estate, not guaranteed payments.
The Wage Earner Protection Program (WEPP):
WEPP is a federal program that provides some protection for employees of bankrupt companies. As of 2025:
Apply for WEPP as soon as the bankruptcy is filed and a trustee is appointed. There are strict timelines, and missing them could mean losing your entitlement. The trustee will provide proof of claim forms.
What WEPP doesn't cover:
The Sears Canada lesson:
When Sears Canada declared bankruptcy in 2017, approximately 14,000 employees lost their jobs. Most received little or no severance because they were unsecured creditors behind banks and landlords. This led employment lawyers, including Samfiru Tumarkin LLP, to advocate for the "Sears Act," proposed legislation that would give employees secured creditor status in bankruptcies.
Retail experience is transferable. The skills you developed at Eddie Bauer are valuable to many employers, but you'll need to translate them into language that resonates outside the company.
Skills that transfer directly:
Target industries for Eddie Bauer employees:
Remove Eddie Bauer jargon from your resume. Instead of "Met SOP requirements," write "Consistently exceeded sales targets." Instead of "Managed POS system," write "Processed $X in daily transactions with 100% accuracy."
Resume positioning strategies:
Government resources:
Provincial employment standards:
Legal resources:
Consider consulting an employment lawyer, especially if:
Many employment lawyers offer free initial consultations.
Apply for Employment Insurance (EI) immediately after your last day. There's a one-week waiting period before benefits begin, so don't delay. You can apply even while waiting for WEPP or other payments.
Mental health support:
Job loss is stressful. These resources can help:
After years in retail, translating your experience into a resume that works outside the industry can feel challenging. Eddie Bauer uses specific terminology, metrics, and processes that other employers won't recognize.
The key is converting your daily work into achievement statements that any hiring manager can understand. Instead of listing duties, focus on results: sales targets you exceeded, customers you retained, problems you solved, teams you led.
Yotru's resume builder helps retail employees create resumes that:
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Eddie Bauer is preparing to file for Chapter 11 bankruptcy in the United States. Because the store operations are managed by Catalyst Brands (a US-based company), the bankruptcy will affect Canadian store employees. As of early February 2026, the filing had not yet occurred but was reported as imminent.
This article is written for Eddie Bauer retail employees in Canada affected by the February 2026 bankruptcy and store closures. It provides practical guidance for understanding bankruptcy claims, accessing WEPP, and navigating career transition.
Yotru content prioritizes accuracy, neutrality, and evidence-based guidance. All factual claims are verified against company statements, reputable reporting, and authoritative sources. Articles are updated as new information becomes available.
This article draws on publicly available reporting about Eddie Bauer's Chapter 11 bankruptcy filing, Women's Wear Daily, Retail Insider, Yahoo News Canada, government labor resources including Service Canada and provincial employment standards, and Yotru's applied research on job search strategy and career transition for retail professionals.
This article is for informational purposes only and does not constitute legal, financial, or career advice. Bankruptcy situations are complex and rules vary by province. Readers should consult qualified professionals, including employment lawyers, for guidance specific to their situation. Individual outcomes depend on personal circumstances, employment contracts, and the specific terms of the bankruptcy proceedings. The bankruptcy had not yet been formally filed as of the publication date, and details may change as proceedings unfold.
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