Here’s another pandemic casualty!
The oldest American menswear label Brooks Brothers announced yesterday (8 July) that it will be filing for Chapter 11 bankruptcy protection from creditors.
The retailer added that it has secured US $ 75 million in debtor-in-possession financing from WHP Global so as to help in the revamping of its business.
Here it is important to note that in May, the retailer had also secured a loan of US $ 20 million from Gordon Brothers. The search is now on for a buyer.
Though several buyers, including Authentic Brands, have shown interest in acquiring the retailer, many prefer to buy Brooks Brothers with less number of stores.
Amidst its search for a buyer, the fashion retailer has also announced the permanent closure of around 51 stores in North America. The process of closing most of these stores has already begun, with inventories moving from stores to distribution centres.
Reportedly, by mid-August, Brooks Brothers will stop manufacturing at its unit in New York, North Carolina and Massachusetts that makes 7 per cent of its products.
With sales massively hit due to the pandemic, not to mention the fast rising competition from brands like Lululemon, it’s been tough for the retailer in recent times.
Also Read: Brooks Brothers explores filing for a potential bankruptcy as early as July
With 250 locations across the globe, the over 200-year-old clothing retailer is owned by Italian billionaire Claudio Del Vecchio.
