Brooks Brothers, the 202-calendar year-aged men’s clothier that has dressed dozens of US presidents and numerous Wall Avenue bankers, submitted for bankruptcy on Wednesday.
The storied New York-primarily based retailer, which operates 200 outlets throughout the US and extra than five hundred around the world, is the most recent retail casualty of the coronavirus pandemic that has previously pressured Neiman Marcus, JCPenney, J.Crew and many others into bankruptcy proceedings.
The iconic brand name, which popularized business-uniform staples such as striped “repp” ties and buttoned-down shirt collars, has struggled in recent a long time in an increasingly relaxed place of work. Suits increasingly have been changed by khakis, jeans and hoodies.
This spring, on the other hand, the coronavirus epidemic not only shuttered outlets but remaining prospects hunkered down at property, performing in sweatpants. Brooks Brothers experienced previously announced plans to near fifty outlets in advance of the Chapter 11 filing.
Even though most of its outfits is imported, Brooks Brothers is one particular of the couple of US chains that even now helps make some of its goods domestically. Very last month, the firm it could near its three US factories, one particular of which is in Long Island Town, Queens, where it helps make its ties. The firm helps make its suits in a factory in Haverhill, Mass. and its shirts in Garland, NC.
Owned by Italian retail tycoon Claudio Del Vecchio, the firm very last calendar year hired financial investment financial institution PJ Solomon to uncover a buyer, but this spring the COVID-19 disaster threw a wrench into those people plans. The chain has snagged $seventy five million in funding to assist it via the Chapter 11 method, courtroom documents exhibit.
“The reason of this filing is to get hold of more funding and facilitate a sale method in an efficient way to increase worth for our stakeholders and be certain that our iconic brand name is positioned to go on under new possession,” a firm spokesperson informed The Write-up. “Brooks Brothers is here to continue to be and serve our faithful prospects for a long time to appear.”
Established in 1818 on Manhattan’s Decreased East Side, the firm boasts of getting outfitted 41 of 45 US presidents. Abraham Lincoln was a faithful customer, and stated to be donning a Brooks Brothers fit on the evening he was assassinated. Teddy and Franklin D. Roosevelt, John F. Kennedy, Monthly bill Clinton, George W. Bush and Barack Obama also had been clientele.
Licensing company Genuine Brand names Group, owner of Barneys New York, Forever 21 and Sports activities Illustrated, is among the the organizations on the lookout at acquiring Brooks Brothers, sources informed The Write-up. But the brand name faces considerable worries, business sources say, such as its stuffy graphic.
“Brooks Brothers is a very good title, but it is a yesterday brand name,” Craig Johnson, president of Customer Progress Partners. “It’s a design statement that’s not as pertinent to customers today as it was a generation ago.”
Apparel brand names are struggling as customers expend less of their disposable earnings on outfits amid the pandemic. Clothes income are down forty two per cent calendar year to day, in accordance to CGP. Clothes accounts for just three.8 per cent of retail investing today compared to nine per cent in 2000.