Eddie Bauer may be headed into bankruptcy court

— -- The outdoor clothing retailer may seek bankruptcy protection as soon as this week, according to five people with knowledge of the discussions.

Hilco Consumer Capital has expressed interest in bidding on the company's assets, said the sources, who declined to be identified because the talks aren't public. CCMP Capital Advisors, a private-equity firm based in New York, also may make an offer for the retailer, which is being advised by Peter J. Solomon Co.

Gordon Bros. Group has also held talks with Eddie Bauer, people familiar with the matter said last month. In the past year, Hilco Consumer Capital, which is based in Toronto, and Boston's Gordon Bros. have purchased defunct retailers such as Sharper Image and Linens 'n Things.

Eddie Bauer shares lost half their value Tuesday, to 24 cents in Nasdaq Stock Market trading. The shares have lost 54% this year.

The first Eddie Bauer sporting goods store opened in Seattle in 1920. The Bellevue, Wash.-based company now operates about 370 stores in the United States and Canada.

No final decision has been made about a bankruptcy filing, according to the sources.

Eddie Bauer had $188 million in long-term borrowing and $2.6 million in cash in the quarter that ended April 4, according to a company filing. The company reported a loss of $44.5 million in its fiscal first quarter on sales of about $180 million.

Sarah Redgrave, a spokeswoman for Eddie Bauer, declined to comment, citing company policy. Representatives of Hilco, CCMP and Peter J. Solomon also wouldn't comment.

Eddie Bauer emerged as an independent company in 2005, two years after parent Spiegel filed for bankruptcy protection.

General Mills owned the company from 1971 until 1988. Shareholders rejected the clothing maker's efforts to sell the company in 2007, thwarting its planned $285 million sale to two buyout firms.