Outdoor apparel retailer Eddie Bauer is facing a potential wave of store closures across the United States and Canada, with roughly 180 locations at risk.

An entity of Catalyst Brands, the retail holding company that operates Eddie Bauer’s North American stores, is reportedly preparing a Chapter 11 bankruptcy filing. If filed, the move would allow the company to restructure its operations and potentially sell some or all of its stores to interested parties.

Chapter 11 bankruptcy is a “reorganisation” proceeding under US law, allowing businesses to restructure their debts while continuing operations.

Known as “debtor in possession”, the debtor usually keeps control of assets and operates the business while creating a court-approved plan to repay creditors over time. It is designed to avoid liquidation, allowing struggling entities to become profitable again.

Founded in Seattle in 1920 by outdoorsman Eddie Bauer, the brand is best known for pioneering the quilted goose-down jacket, famously dubbed the “Skyliner.”

Today, Eddie Bauer sells a wide range of outdoor apparel, hiking and travel gear, and luggage.

Sources said a Chapter 11 filing would not impact Eddie Bauer’s manufacturing, wholesale, or e-commerce operations, nor its retail business outside North America, including stores in Japan, according to Business Insider.

Interested parties may bid to acquire all or part of the existing North American store network, licensing the brand from Authentic Brands Group, which owns Eddie Bauer worldwide.

Catalyst Brands, which also operates JCPenney, Nautica, and Brooks Brothers, did not immediately respond to requests for comment.

Last month, Authentic Brands Group announced it was transferring Eddie Bauer’s North American manufacturing, e-commerce, and wholesale licenses from Catalyst Brands to Outdoor 5.

Eddie Bauer has previously filed for bankruptcy twice, in 2003 and 2009.

In 2021, the brand was acquired by Authentic Brands Group in partnership with SPARC Group, which later became Catalyst Brands.