Alvarez & Marsal

When high charge-off rates threatened to trigger a rapid amortization of its multi-billion
dollar credit card securitizations, The Spiegel Group, which included Eddie Bauer, Newport
News and Spiegel Catalog, faced a severe liquidity crisis. Spiegel hired Alvarez & Marsal
as Chief Restructuring Officer, interim Chief Executive Officer, as well as Chief Financial
Officer of the catalog company, to stabilize the company’s financial situation and preserve
value. Alvarez & Marsal negotiated debtor-in-possession financing and instituted a new
private label credit program. With liquidity under control, Alvarez & Marsal worked to
separate two troubled divisions from the parent, a complex process that required extensive
reorganization of back-end systems. Alvarez & Marsal also sought to revive operations,
consolidating distribution and call centers, focusing information systems expenses,
enhancing inventory management and closing store locations. The team oversaw the sale
of Newport News, Spiegel Catalog and excess real estate, producing over $100 million in
proceeds, then focused on strengthening Eddie Bauer. In 12 months, Alvarez & Marsal
substantially increased enterprise value, identifying more than $150 million in cost savings
and margin improvements.