SEATTLE, Jan. 27 /PRNewswire-FirstCall/ -- The Board of Directors of Eddie
Bauer Holdings, Inc. (Nasdaq: EBHI) (the "Company") has decided to reduce the
size of the Board from ten to seven members, and to significantly reduce the
compensation of remaining Board members. These actions are being taken as
part of the overall Company plan to reduce expenses in the current difficult
retail environment.
In 2008, the Company removed $45 to $50 million from its cost structure.
In January 2009, the Company announced that given the weakness in the retail
economy, the Company will commence an additional cost reduction effort for
2009 targeting additional cost reductions of $10 to $15 million. The
downsizing of the Board and the reduction in the Board's compensation is being
made in the context of the overall cost reduction efforts at Eddie Bauer.
To accommodate the downsizing of the Board, three members of the Board -
Howard Gross, Paul Kirincic and Ed Straw -have volunteered not to stand for
reelection for a new term in May 2009, and the Board size will be reduced to
seven members, effective as of the three directors' last day of service. All
three have been integral and respected members of the Board since the Board's
appointment in 2005 as the Company emerged from the Spiegel bankruptcy, and
Mr. Gross served as interim Chief Executive Officer of the Company from
February to July 2007.
"I would personally like to thank Howard, Paul and Ed for their time,
commitment and expertise provided to the Company over the past four years.
They have made invaluable contributions to the Board and the Company's
turnaround efforts. I know I speak for all of the directors, management and
shareholders when I thank Howard, Paul and Ed for their four years of
dedicated service, hard work and fine contributions," said William End,
Chairman of the Board.
In addition to reducing the size of the Board, the Board has adopted
recommendations of the Compensation Committee to reduce the cash compensation
payable to each Board member by approximately 50%, reduce the value of annual
equity grants for Board service and defer the 2009 annual equity award for
Board service.
Contact:
Eddie Bauer Holdings, Inc.
Marv Toland, Chief Financial Officer - 1 425 755 6225
SOURCE Eddie Bauer Holdings, Inc.