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Spiegel seeks permission to open seven new Eddie Bauer stores; sales still faltering

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In a reversal of strategy, The Spiegel Group (Downers Grove, Ill.) has reportedly asked a federal judge for permission to open seven new Eddie Bauer stores.

The troubled retailer, which has been in bankruptcy since March 2003, has closed more than 60 units of its Redmond, Wash.-based subsidiary.

The new stores, pending bankruptcy court permission, would be in Colorado Springs, Colo.; South Windsor, Conn.; Troutdale, Ore.; Lee, Mass.; Short Pump, Va.; Alderwood, Wash.; and Calgary, Alta.

A hearing on the request is scheduled for November 18.

The company announced that net sales declined 25 percent for the four weeks ended Oct. 25, 2003. For the 43 weeks ended October 25, net sales are down 23 percent.

Same-store sales for the Eddie Bauer division decreased 6 percent both for the four week- and 43-week periods, Spiegel says that unseasonably warm weather adversely impacted Eddie Bauer's retail sales in October, when the 468-unit chain experienced a drop in store traffic and lower demand for winter apparel. However, the report says Eddie Bauer continues to see strong customer response to its women's apparel offer.

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