One day after its filing for Chapter 11 bankruptcy protection, a judge said Eddie Bauer Holdings, the Bellevue, Wash.-based retailer, can pay employee wages and vendors in order to remain operational.

Eddie Bauer filed for bankruptcy June 17. U.S. Bankruptcy Judge Mary Walrath of the Delaware District made her ruling June 18.

Walrath also approved $90 million in loans to shore up operations during bankruptcy proceedings. When the retailer filed for bankruptcy protection, it said that New York City-based private equity firm CCMP Capital Advisors LLC had bid $202 million in cash to acquire the business. But the court will later conduct an auction to give other concerns a chance to make competing bids.

Eddie Bauer — which specializes in sportswear, outdoor apparel and footwear —
has three locations in the county, one in Fashion Valley mall, another in University Towne Center and one at the Viejas Outlet Center in Alpine. It closed two stores in the Las Americas outlet mall in San Ysidro and in Westfield Horton Plaza. Nationwide it has 371 stores open.

Eddie Bauer lost $44.5 million against revenues of $179.8 million during the first quarter of this year. In the first quarter of 2008, it had a loss of $19.3 million and revenues of $213.2 million.

The company’s shares, traded on Nasdaq as EBHI, closed trading at 18 cents on June 18, down 4 cents from the previous day’s close. During a 52-week range they have traded as high as $8.72 and as low as 15 cents.

— Connie Lewis