Eddie Bauer (A)
Posted: 5 Sep 2009
Date Written: August 24, 2009
Abstract
In June 2005, Eddie Bauer, the specialty apparel retailer, emerged from bankruptcy. Under the plan of reorganization former creditors converted their debt into common shares, taking 100% ownership in the reconstituted company. Large banks - including Bank of America and J.P. Morgan Chase - were among the former creditors. In October 2005, Eddie Bauer stock was selling for $24 per share. Analysts were projecting target prices ranging from $22 to $35 per share. Account managers at Bank of America and J.P. Morgan Chase needed to assess whether to hold or sell their shares in Eddie Bauer.
JEL Classification: A23
Suggested Citation: Suggested Citation
Healy, Paul M. and Katz, Sharon P. and Sesia, Aldo, Eddie Bauer (A) (August 24, 2009). HBS Case No. 110-008, Harvard Business School Accounting & Management Unit , Available at SSRN: https://ssrn.com/abstract=1467638
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