Spiegel gets DIP gets OK, prepares to slash positions
May 6, 2003,
Downers Grove, IL — The Spiegel Group said it will cut approximately 635 positions as it restructures its Eddie Bauer headquarters organization, realigns its corporate information services and closes down a Northwestern service center. In the meanwhile, a bankruptcy court has approved $400 million in DIP financing to fund its operations during restructuring.
While rival cataloger L.L. Bean considers acquiring Spiegel's Eddie Bauer operation, the division will cut 180 positions by then end of this week at its headquarters in Redmond, WA, the company said. Also being cut are 90 associates in Spiegel's Chicago-area data center and headquarters.
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