Posted: 5 Sep 2009
Date Written: August 24, 2009
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