Eddie Bauer (A)
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.
Collection: HBSP (USA)
Ref: HBS-110008-E
Format: PDF
Number of pages: 21
Publication Date: Aug 24, 2009
Language: English
Review date: Feb 28, 2013
What material is included in this case:
Description
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.
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Year: 2005
Geographic Setting: United States
Industry Setting: Athletic & outdoor apparel; Clothing stores
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