Golden Gate Capital won the bankruptcy auction for Eddie Bauer with a $286 million bid. As the company's new owner, Golden Gate will “maintain the substantial majority of Eddie Bauer's stores and employees,” Eddie Bauer said in a press release. There was speculation that Eddie Bauer might be liquidated if purchased by a different buyer.
Zero Hedge posted an interesting example of an investment solicitation book prepared by a major investment bank on a troubled retail asset. One choice sound bite, "But the funniest thing is the projected NOI, and that is somehow supposed to go from $3.2 million actual to $6.1 million by 2010. Even with all tenants leaving. No commentary here, but this is at the heart of the CRE/REIT/CMBS problem: everyone believing NOIs will increase while tenants go bankrupt, liquidate or otherwise negotiate rents downward. When will the lies stop?"