Eddie Bauer (A)

Posted: 5 Sep 2009

See all articles by Paul M. Healy

Paul M. Healy

Harvard Business School; National Bureau of Economic Research (NBER)

Sharon P. Katz

INSEAD

Aldo Sesia

Harvard Business School

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

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

Paul M. Healy (Contact Author)

Harvard Business School ( email )

Soldiers Field
Boston, MA 02163
United States
617-495-1283 (Phone)
617-496-7387 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Sharon P. Katz

INSEAD ( email )

Boulevard de Constance
CEDEP No. 11
F-7705 Fontainebleau Cedex, 77305
France

Aldo Sesia

Harvard Business School ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States
617-496-2085 (Phone)

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