Eddie Bauer Goes to Chapter 11 Heaven

Eddie Bauer(EBHI Quote) is the latest retail casualty.

In a move that hardly qualifies as a shock, the apparel retailer filed for Chapter 11 bankruptcy protection Wednesday, sending shares plummeting 29% to 16 cents in afternoon trading. Rumors have been circulating for several weeks that the retailer was next on the chopping block.

The company blamed its debt load, saying it might not be able to pay back some of its $225 million senior debt or have the cash under its line of credit to make vendor payments in the future.

CCMP Capital Advisors LLC has bid for its assets, but other buyers may also make bids while the company is under court protection.

Eddie Bauer considered refinancing all or some of its debt, and it considered a reorganization, sale or liquidation through Chapter 11 bankruptcy protection, as well as continued operation on a modified business plan. It now hopes for the entire company to be sold through Chapter 11.

This is the second time Eddie Bauer has filed for bankruptcy protection since its inception in 1920, when it was a sport shop.

Last month the retailer posted a first-quarter loss of $44.5 million, hurt by a 16% drop in sales.

Eddie Bauer joins Filene's Basement, Linens 'N Things, Circuit City, Mervyns and other retailers that have filed for bankruptcy since the recession began.