Brooks Brothers files for bankruptcy, will close 51 stores - syracuse.com

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Brooks Brothers is the latest clothing retailer to file for Chapter 11 amid the coronavirus pandemic.

Market Watch reports the 200-year-old fashion brand, known for dressing 40 U.S. presidents and making clothes domestically, filed for bankruptcy protection Wednesday in Wilmington, Delaware.

“Over the past year, Brooks Brothers’ board, leadership team, and financial and legal advisors have been evaluating various strategic options to position the company for future success, including a potential sale of the business,” a spokesperson for the retailer said in a statement. “During this strategic review, Covid-19 became immensely disruptive and took a toll on our business.”

According to CNBC, Brooks Brothers has attracted interested from several acquirers, including Authentic Brands, but may have to close stores to make a deal happen.

The company, which is owned by Italian businessman Claudio Del Vecchio, said it would close about 51 stores. Locations were not announced, but most of the closures have reportedly already begun with inventory moving from targeted stores to distribution centers; eight stores were permanently closed last month, including in NYC, Boston and Washington, D.C., according to Business Insider.

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. The chain also previously had a location at Waterloo Premium Outlets. Many locations have remained closed due to the coronavirus shutdown, but the majority plan to reopen.

CNBC reports the brand will also close three of its U.S. factories in Massachusetts, North Carolina and New York, by Aug. 15. The facilities produce about 7% of the brand’s products, including suits, ties and some shirts; roughly 700 jobs are affected.

Other companies that have filed for bankruptcy since the coronavirus pandemic began in March include Chuck E. Cheese, Hertz, J. Crew, JCPenney, and Neiman Marcus.

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Brooks Brothers files for bankruptcy, will close 51 stores - syracuse.com
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