Eddie Bauer Cancels Bankruptcy Auction as Bids Fail to Emerge

Clothing retailer Eddie Bauer LLC canceled a bankruptcy auction of available assets after receiving no qualified bids, saying it remains open to sale offers as it continues liquidating store locations.

The struggling chain, now facing dimming prospects of keeping its brick and mortar operations intact, said in a notice Tuesday that it “will consider any proposal, including a proposal to purchase some or all” of its assets as a going concern as it proceeds with store closings that it announced when it filed for bankruptcy in February.

The company’s hired consultant, RCS Real Estate Advisors, announced Tuesday that it’s “now ...