Eddie Bauer stores in the U.S. could be closing— and it's not the only chain in trouble

A bankruptcy filing could result in almost 200 stores closing, while the restaurant industry also contracts

By Chris Morris2 min readUpdated February 6, 2026

The gloomy jobs news that kicked off 2026 is set to become even worse in the months ahead as a major retail name and a restaurant chain are expected to close all U.S. locations and another major restaurant group plans to close more than 100 of its stores.

Catalyst Brands, the retail operator of Eddie Bauer stores, is reportedly planning to file for bankruptcy, which would likely mean the closure of most, if not all, of the brand's roughly 180 stores in the U.S. and Canada. As that situation evolves, Olive Garden parent company Darden $DRI Restaurants has announced plans to shut down its Caribbean-themed Bahama Breeze restaurant chain, and and Taco Bell parent Yum! Brands has said it will close 250 Pizza Hut locations around the country.

For Eddie Bauer, things remain uncertain. There is reportedly interest in taking over some of the existing American stores, but not all, so the number of stores that may be closed is still fluctuating. And any Chapter 11 filing by Catalyst would not impact the company's e-commerce operations or retail business outside of North America, as those licenses belong to another corporate entity.

Should the filing take place, as expected, it would be the third to impact the brand.

The Pizza Hut closings, meanwhile, come as America's appetite for the staple declines. Major chains including Papa John's $PZZA, Pizza Hut, and Papa Murphy's have all seen sales decline in recent years. And other restaurants, including Pieology and Bertucci's, have filed for bankruptcy.

Yum! announced the closing plans in an earnings call Wednesday, saying the closures would occur in the first half of this year. That will reduce its U.S. footprint by about 3%. The company has not yet released a list of specific locations that will be affected.

Darden's decision to close Bahama Breeze will affect fewer workers: The chain only has 28 locations in the U.S. Half of those will close entirely, while the rest will be converted to other Darden brands, which include Olive Garden, Yard House, and Ruth's Chris Steak House. Most of the locations to be converted are located in Florida.

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