Brooks Brothers, the two-hundred-year-old men wear files for bankruptcy. The two-hundred-year-old men’s wear II tailored that has dressed 40 United States presidents and unofficially became the wall street bankers. The brand has recently filed for Bankruptcy.
The privately held company had been struggling,
The privately held company had been struggling, his business attire grew more casual in recent years. But it has been decimated by the Coronavirus pandemic, which sends demand for suits plummeting. Many working from home employees opted for far more relaxed looks of t-shirts and sweatpants rather than pinstripes suits and custom shirts.
Brooks Brothers filed for chapter 11
Brooks Brothers filed for chapter 11 early Wednesday in a Delaware court. It had warned in June that it would lay off nearly seven hundred workers in three states and is seeking a buyer because Corona Virus destroyed their business.
Their south factory in Haverhill pivoted to making surgical masks and gowns back in March, but their owner told the New York Times in June that the factory never made money for us. The company has been evaluating various strategic options including a potential sale, but it has struggled to find a buyer.
The retailer is reportedly in the process of shuttering 20 percent of its two hundred and fifty United States stores. According to the bankruptcy filing, Brooks Brother has secured seventy-five-million-dollar in financing to continue operating.
A little about Brooks Brothers history
Brooks Brother opened its first store in 1880 near wall street. Years later it began making ready-made suits for men that couldn’t wait for a tailor. In 1896 the retailer invented the original button-down polo shirt and has offered much first-of-its-kind clothing, including the madras prints and the chunky Shetland sweaters.
Claudio Del Vecchio
Claudio Del Vecchio, the Brooks Brothers owner, and CEO bought the brand in 2001 from Marks and Spencer for 225 million dollars. He helped expand the brand appeal beyond the men, including women’s clothing, kids, and home items. He told the New York Times last month that its American factories never made money and planned to move some operations overseas to preserve cash. Brooks Brothers are the latest iconic retailer to go bankrupt.
J. Crew, Neiman Marcus, J.C. Penney have all filed in recent months, partly slumping sales from the virus. The pandemic hit Brooks Brothers especially hard because some workers were forced to work from home eliminating the need for new suits and dressier clothes. A global day in retail said in a note Wednesday, that over the year sales of men’s formal clothing fell by 74 percent between April and June.
While this deterioration will ease over time, demand will remain suppressed for the rest of 2020, and well in 2021 as office working business meetings and socializing are all reduced. Wrote Neil Saunders, the managing director of global data retail, this leaves Brooks Brothers very exposed to a depressed market.
When Brooks Brothers emerged, and where it stands now?
In 1818 cherry street New York the first store was opened by Henry S. Brooks. Daniel Brooks, Elisha Brooks, Edward Brooks, John Brooks were four brothers to start a well-known business. Currently, BB has more than 250 retail and factory stores in the US, shops in airports, and more than 250 locations internationally.