June 17 (Bloomberg) -- Eddie Bauer Holdings Inc., the U.S. outdoor-clothing chain, filed for bankruptcy court protection as part of a proposed sale to affiliates of CCMP Capital Advisors LLC for $202 million.

The company listed $476 million in assets and $427 million in debts as of May 30 in Chapter 11 papers filed today in U.S. Bankruptcy Court in Wilmington, Delaware. Affiliates of CCMP agreed to buy the company should no other bidders top their offer at a proposed auction, according to court papers.

Eddie Bauer, based in Bellevue, Washington, is seeking quick court approval of the auction, in which CCMP’s affiliates would act as lead bidders.

“A failure to consummate the sale on an expedited basis could compromise the sale and bid process,” company Chief Financial Officer Marvin Edward Toland said in court papers. The company said it expects to complete the sale within 60 days.

Its predecessor, Eddie Bauer Inc., filed for bankruptcy in 2003 along with its former parent, Spiegel Inc. In 2007, two years after leaving court protection, shareholders rejected a proposal to sell the clothing maker to two buyout firms for $285 million.

The current, $202 million cash offer from CCMP would be part of an auction that needs approval of the bankruptcy court, the company said in a statement. CCMP Capital “intends to operate the business as a going concern with little or no long- term debt,” the company said.

The company is seeking interim court approval to borrow $90 million to fund its bankruptcy case.

Company’s Debts

Eddie Bauer hasn’t made an annual profit in three years and reported a $44.5 million loss in the first quarter on sales of about $180 million.

The company has $324 million in bank debt and $75 million in notes not backed by any collateral, according to court records. The Bank of New York was listed as the company’s biggest unsecured creditor, representing noteholders owed $75 million.

Eddie Bauer has 7,700 U.S. employees and another 933 workers in Canada, where the company also planned to file bankruptcy to protect its Canadian assets from creditors.

1920 in Seattle

Eddie Bauer opened its first sporting-goods store in Seattle in 1920. It operates about 370 stores in the U.S. and Canada.

The current bankruptcy was caused mainly by the high debt taken on during the previous bankruptcy case, Toland said in court papers.

Catalog retailer Spiegel bought Eddie Bauer in 1988 and expanded the retail outlets, according to court records. By 2002 the company had grown from 61 retail and outlet stores to 501 stores.

That growth also diluted the company’s reputation as a provider of mountaineering and other cold-weather gear, Toland said. The company that became famous for making flight jackets in World War II and coats used by the first American team to scale Mount Everest in the 1960s became known for selling casual clothing to mature women.

The company targets customers from 30 years old to 54 years old with an average income of $77,000, according to court papers.

The case is In re Eddie Bauer Holdings Inc., 09-12099, U.S. Bankruptcy Court, District of Delaware (Wilmington).

To contact the reporters on this story: Steven Church in Wilmington, Delaware, at schurch3@bloomberg.net; Lauren Coleman-Lochner in New York at llochner@bloomberg.net.

Last Updated: June 17, 2009 18:09 EDT