Brooks Brothers, founded in 1818, files for bankruptcy

Brooks Brothers declares bankruptcy

Brooks Brothers, the oldest retailer in the United States, was not exempt from the financial impact of the coronavirus pandemic, and on Wednesday, the company filed for Chapter 11 bankruptcy court protection, CNBC reported.

Another men's clothier, Barneys of NY, sought bankruptcy protection a year ago, and it was followed by a slew of others toppled by the pandemic, including Neiman Marcus, J.Crew and J.C. Penney.

"Although the pandemic has severely eroded the outlook for the business, Brooks Brothers has long suffered from a failure to decisively adapt to changing trends", said Neil Saunders, the managing director of GlobalData Retail.

JCPenney announced in May it was filing for bankruptcy earlier this month, and Neiman Marcus did the same in late April.

The privately held company had been struggling as business attire grew more casual in recent years.

Brooks Brothers opened its first store in NY in 1818 and survived two world wars and the Great Depression.

The Brooks Brothers Flatiron Shop at The Streets at Southpoint shopping mall in Durham, N.C., May 30, 2020, remains closed due to the coronavirus pandemic.

The company, founded and based in NY, filed for Chapter 11 restructuring proceedings in the US Bankruptcy Court for the District of Delaware.

The Chapter 11 bankruptcy filing in DE allows Brooks Brothers to keep operating while it works out a plan to turn the business around and pay its debts.

Brooks Brothers has more than 500 stores worldwide and 4,025 employees, including at Destiny USA in Syracuse, the Fashion Outlet of Niagara Falls, Eastview Mall near Rochester, and Log Jam Outlet in Lake George. More people are dressing casually while working at home and buying their clothes online.

"The good thing about Brooks Brothers: It's a very strong brand", he said.

Brooks Brothers filed for Chapter 11 early Wednesday in a DE court.

Clark Cable wore Brooks Brothers and Jennifer Aniston appeared on the cover of GQ magazine wearing nothing but a red, white and blue Brooks Brothers tie.



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