Storied menswear retailer Brooks Brothers — that has dressed 40 U.S. presidents in its own 200-year history — filed for bankruptcy now, the most recent merchant to do so throughout the coronavirus pandemic.
The merchant filed Chapter 11 proceedings in a Delaware courtroom this morning, together with both assets and obligations listed as between $500 million to $1 billion, according to court documents. Brooks Brothers’ strategy to look for a new buyer throughout the bankruptcy.
“Our purpose is always to begin this significant chapter using a new owner that has an appreciation for the Brooks Brothers heritage, a vision for the future and contrasts with our core values and civilization,” Claudio Del Vecchio, the CEO, and owner of Brooks Brothers stated in an announcement. “Before COVID-19, we’re conducting an appraisal of various strategic choices to position the business for potential success in a fast transforming retail surroundings, including a potential sale of the company. Industry headwinds were just intensified by the pandemic.”
Brooks Brothers managed to secure $75 million in funding from WHP International to continue functioning throughout the event, according to the organization.
It started shutting 51 of its almost 200 U.S. shops due to the coronavirus pandemic and is considering shuttering other people, according to the organization.
Brooks Brothers have fought in the last few years as office workers began to dress more casually, and Del Vecchio began searching for a buyer this past year.
Its fate gained much bleaker through COVID-19, which forced workers from their workplace and in their houses, ditching suits from the procedure, and it’s been inching toward filing for bankruptcy for decades. It laid off almost 700 workers of its 4,025 workforces in June, according to the Times.
Clothes store in Manhattan. It’s dressed everyone from Wall Street workers to Abraham Lincoln, who had been wearing a Brooks Brothers jacket when he was assassinated in 1865, in accordance with Brooks Brothers’ site. Del Vecchio, whose dad Leonardo Del Vecchio founded eyewear giant Luxottica, purchased the menswear purveyor for $225 million in 2001 from British firm Marks & Spencer, the Times reported.
Retailers were dealing with a decade of competition from online retailers, and also the coronavirus pandemic, which forced several to shutter their doors for weeks, exacerbated their problems.
Crew, Neiman Marcus, JCPenney, Aldo, True Religion, and John Varvatos are one of the merchants to file for bankruptcy throughout the pandemic. Home-decor series Pier 1 Imports declared in May that it’ll go from business and forever shutter its almost 540 shops across the nation.