After filing for bankruptcy protection a month ago, Eddie Bauer Holdings Inc. (OTC: EBHIQ) is already seeing the suitors line up. Iconix Brand Group Inc. (NASDAQ: ICON), which owns Rocawear, is showing some interest. Hilco Consumer Capital and Gordon Brothers Group LLC are also looking to make a joint offer for the embattled clothing retailer, and Golden Gate Capital is said to be interested. Hudson Capital Partners LLC may throw its hat in the ring, as well.

Tomorrow's the bidding deadline, and there's an auction lined up for Eddie Bauer's assets on Thursday.

Already in the game, CCMP Capital Advisors ponied up $202 million in a "stalking horse bid," meaning that it will make the acquisition if nobody else beats its offer.

For now, Bauer's is living on borrowed time -- and cash. The company got court permission to take a loan for $100 million to keep the operation moving until an acquisition or auction is complete.

The private equity firms rumored to be eyeing Eddie Bauer have retail and apparel companies in their portfolios, which suggests a possibility that the company could be turned around with the right investment and management team. If not, I wonder if they'll sell the window decorations at the auction . . . always wanted my living room to look like a mall.

Back in March, I wrote with some skepticism about Eddie Bauer's (NASDAQ: EBHI) efforts at reinvention as a higher-end outdoor apparel company: "The problem for Eddie Bauer may be that it's too late: Years of eight- and nine-digit losses have hurt the company's balance sheet and the company currently has a negative tangible book value. With better-financed competitors like EMS, Eddie Bauer may have a hard time breaking through."

The continued weakening of the economy may have finally done Eddie Bauer in. Bloomberg reports that "The outdoor clothing retailer may seek bankruptcy protection as soon as this week, according to five people with knowledge of the discussions."

With its stock trading at around 61 cents per share, Eddie Bauer Holdings Inc. (NASDAQ: EBHI) is going back to its roots by: introducing a new line of high-performance outdoor gear, and scaling back on the casual apparel that has been getting crushed by weak consumer spending and competition.

In a press release, Eddie Bauer said that "In a bold return to its heritage, Eddie Bauer has joined up with a dream team of mountaineers to build a new line of outerwear and gear called First Ascent. First Ascent combines Eddie Bauer's legacy as the original expedition outfitter with the expertise of some of today's most renowned mountain guides and climbers, including Peter Whittaker, Ed Viesturs, and Dave Hahn."

Faced with stock that is now sitting well under $1 per share, Eddie Bauer Holdings (NASDAQ: EBHI) announced that it was cutting its board of directors from ten members to seven and also slashing the payments directors receive.

In a press release, the company said that "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."s

This is good news, but it's long overdue. According to the company's latest proxy statement, directors were paid $65,000 per year in cash in addition to $1,500 per meeting in 2007. But there were also generous stock and option awards that drove the non-employee director compensation well into the six figures. In 2007, Eddie Bauer spent over $2.3 million paying its non-employee directors. And while the stock price was much higher back then, it was still way below its level when the company went public in 2005.

Here's what's so crazy about that: As of today, Eddie Bauer has a market cap of just $21.6 million, meaning that it spent more than 10% of its current market cap paying its non-employee directors to go to a few meetings per year while the company was being driven into the ground.

Reducing the compensation of the board is a start. Replacing its members would be a better move.

Update Nov. 26, 2008: See all 2008 Black Friday deals.

This week, some apparel and accessory producers and retailers offer a look at how they've been doing between early summer's economic stimulus spending and the coming holiday season. While Polo Ralph Lauren Corp. (NYSE: RL) reported higher earnings last week, Coldwater Creek Inc. (NASDAQ: CWTR), Eddie Bauer Holdings Inc. (NASDAQ: EBHI), Kenneth Cole Productions Inc. (NYSE: KCP), and K-Swiss Inc. (NASDAQ: KSWS) all reported net losses as consumers pulled back on spending over the summer due to higher fuel prices and other economic worries. The expectations of analysts surveyed by Thomson Financial for such companies scheduled to report this week don't look much different; i.e., a bright spot or two among lower expectations overall.

Hip retailer Urban Outfitters Inc. (NASDAQ: URBN) is expected to post earnings 22.9% higher than a year ago, to $0.35 per share, on revenue of $475.9 million (+26.4%). The Philadelphia-based company already said that same-store sales in the quarter were 10% higher. Urban Outfitters has beat expectations in recent quarters, by 11.5% in the previous quarter, and analysts on average recommend buying URBN. Shares fell to a 52-week low of $16.61 per share on Friday, and are down 29.5% from a year ago. Other companies expected to report more modest earnings growth in the coming week include watch and accessory maker Fossil Inc. (NASDAQ: FOSL), retail giant Wal-Mart Stores Inc. (NYSE: WMT), and TJX Companies Inc. (NYSE: TJX), parent of such discount retail chains as T.J. Maxx and Marshalls. These three companies have tended to top analysts estimates in recent quarters, and Fossil and TJX ended the week near their 52-week lows.

While Los Angeles-based American Apparel Inc. (AMEX: APP) had a strong second quarter, the casual wear maker is expected to report $0.13 per share earnings for the third quarter, the same as in the year-ago period. And analysts anticipate that Kohl's Corp. (NYSE: KSS) will report that profits fell 16.4% to $0.51 per share on revenue of $3.9 billion (+1.9%). Though same-store sales for October fell 9%, the Menomonee Falls, Wis.-based company reaffirmed its third-quarter forecast. Kohl's has offered positive surprises in recent quarters, topping estimates by 5.6% in the previous quarter. The consensus recommendation remains to buy KSS. Shares have been climbing after reaching a 52-week low in late October, but are still down 32.8% from a year ago.