Bankruptcy protection sought

Monday, March 17, 2003 | 9:48 a.m.

CHICAGO -- Spiegel Inc., owner of Eddie Bauer stores and the Spiegel catalog, today sought bankruptcy protection to reduce $1.7 billion in debt it accumulated as sales fell and credit-card customers defaulted on payments.

Spiegel, which has had more than $727 million in losses in the past two years, sells clothes and home furnishings through catalogs, 560 specialty retail and outlet stores and Internet sites. Sales fell 20 percent through the first eight weeks this year and the company had losses of $139.9 million in the first nine months of 2002 and $587.5 million in 2001.

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