Brooks Brothers Officially Files for Bankruptcy
In 2020 thus far, a host of retailers have filed for bankruptcy, citing accelerated pressures from the COVID-19 pandemic. Today, preppy brand Brooks Brothers, known for its seersucker classics, suiting, and timeless collared shirts, joined Neiman Marcus, J.Crew, and JC Penny in seeking bankruptcy relief in a Delaware court.
The company, which is owned by Italian business man Claudio del Vecchio, will be halting production of clothing at its domestic factories in the United States starting on August 15, and will be seeking a new owner.
Del Vecchio explained the move towards bankruptcy in an interview saying, “Specialty retailing has been changing a lot in the last four to five years, and we were in the process of adapting to that new environment. When coronavirus came, there was really no way to sustain things.” Prior to the global health crisis that forced stores to temporarily close, the brand had been facing troubles, though, with $1 billion in revenue in 2019 and a quarter of sales coming from e-commerce, all while running 500 stores worldwide.
The pre-COVID downturn can be attributed, at least in part, to the fact that corporate America's dressing standards had become increasingly lax, with fewer men buying suits. Enter shelter-in-place and the shift to even more relaxed attire in day-to-day life was complete.
The brand, which has existed for more than 200 years and has been worn by numerous presidents including Abraham Lincoln.
Keeping the legacy of the heritage brand alive is important to Del Vecchio. “For now, I want to ensure a long life for this company.” he told the Wall Street Journal.
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