Federal Bankruptcy Court

Fedreal Bankruptcy Court OKs Hefty Spiegel Bonuses: Top Exec to Get $3 Million if he's Fired
Seattle Post-Intelligencer Staff

Spiegel Inc., the parent company of Redmond retailer Eddie Bauer, received federal bankruptcy court approval last week to pay more than $26.4 million in bonuses to its top 225 employees.

In addition, Eddie Bauer President and Chief Executive Fabian Mansson would receive more than $3.1 million in severance if involuntarily terminated.

Spiegel said in its court filing that its employee-retention program was designed to "minimize management and other key employee turnover ... as well as enhance employee morale and job commitment."

The Downers Grove, Ill.-based company filed for Chapter 11 bankruptcy protection in March with more than $1.7 billion in debts. Since then, it has laid off 900 employees, and 1,250 other workers have voluntarily terminated their employment. Spiegel closed 60 Eddie Bauer stores and a call center in Bothell.

A U.S. Federal bankruptcy court in Manhattan approved the bonuses.

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