Outdoor clothing retailer Eddie Bauer may have too much debt to handle.

Overshadowed by GM and Chrysler’s bankruptcy filings, a popular outdoor clothing retailer, Eddie Bauer, could be headed to bankruptcy before the end of the week.  The current economic downtown has weighed heavily on the company who has a gigantic mound of debt.

Eddie Bauer’s first store opened in Seattle in 1920, and it currently runs about 370 stores in the United States and Canada.  They became an independent company in 2005 after their parent company Spiegel filed for bankruptcy a couple of years before that.  General Mills actually owned the company from 1971 to 1988.  Back in 2007 the clothing maker tried to sell the company, but shareholders blocked the plan.

The company hasn’t been doing well the last few years, and has lost money for three consecutive years.  They are reporting $268 million in outstanding debt, which includes the $44.5 million that they lost in the first fiscal quarter of the year.  The company reported $525.22 million in assets in April, but that’s coupled with $448.9 million worth of debt.

With the news of this first breaking Tuesday, Eddie Bauer’s shares lost half of their value, to 24 cents.  The shares are down a total of 54% in 2009.

Most retailers are feeling the pinch of the recession, but some of them, like Eddie Bauer, have been carrying large amounts of debt for years.  As revenue has recently decreased, the bills have been impossible to keep up with.

Later this week the final decision will be made as to if they will file for bankruptcy or not, but it doesn’t appear that things are getting any better for them.  Bankruptcy might just be their best opportunity.  As you’ve seen Chrysler begin to emerge from bankruptcy, Eddie Bauer could be there in a short time.

Let this be a lesson to you if you are struggling with a large amount of debt.  Companies file for bankruptcy to help them restructure for their future gain.  Like individuals, they have debt discharged which sets them up for a better financial outlook.

You can have the same opportunities in your own personal financial situation, so why not take advantage of them?  Many of the companies that people owe are currently having debts discharged, so do not feel bad if you have to do the same.  Bankruptcy is simply an opportunity for people, or companies, to turn their financial situation around, so that they can have a fresh start.  If you would like to find out more about how bankruptcy can help you, don’t hesitate to contact a Dallas-Fort Worth Bankruptcy attorney.