International News - Spiegel files for Chapter 11 after credit card fails

US retailer and mail order firm Spiegel Inc, which owns the Eddie Bauer brand, has filed for Chapter 11 protection while it addresses cashflow problems caused by losses from its private-label credit card scheme.

Spiegel, which has been trying to sell off the venture since last year, had to secure a US$400 million (£256 million) debtor-in-possession financing package after failing to meet performance requirements. The retailer, with assets valued at US$1.74 billion (£1.11 billion), had to divert funds to repay investors.

Catalogue operations Spiegel and Newport News will continue to trade as normal, but chief restructuring officer and interim chief executive William Kosturos has not ruled out store closures or the sale of Eddie Bauer.