Eddie Bauer sale down to short list.

Byline: Soma Biswas and Vipal Monga

Bankrupt Spiegel Inc. has established a short list of private equity firms interested in buying its Eddie Bauer Inc. retail and catalog business, which could fetch slightly more than $1 billion, according to sources.

On that short list are Bain Capital LLC, Apollo Management LP, Kohlberg Kravis Roberts & Co. and the private equity arm of Credit Suisse First Boston, they said, adding that no other retailers or strategic buyers are participating in the auction.

Spiegel will seek final bids from the private equity firms at the end of July, the sources said.

Debbie Koopman, a Spiegel spokeswoman, declined …