The American company Brooks Brothers, known for its business suits, could not cope with the outbreak of the crisis.
In accordance with Section 11 of the US Bankruptcy Law, the brand has filed for bankruptcy protection. The company says it hopes to find a buyer to avoid liquidation. For the first time rumors about the possible bankruptcy of Brooks Brothers appeared at the beginning of June.
So far, Brooks Brothers has taken the decision to close 51 stores to cut costs. Today the company owns almost five hundred outlets, half of which are located in the United States. A number of American factories were also suspended, producing about 7% of the brand's products.
Brooks Brothers generated over $991 million in sales last year, roughly 20% of which was online. The company recognizes that the need for change is long overdue. It is possible that the restructuring would have been successfully carried out if it were not for the coronavirus pandemic and the resulting sharp decline in business clothing sales against the backdrop of massive office closures. The company failed to survive the crisis that broke out and its future is still unclear.
The history of the Brooks Brothers brand began in 1818. The company was founded by Henry Brooks and was originally called H. & D.H. Brooks & Co. The modern name originated in 1850, when the leadership passed to the three sons of Brooks. Since 2001, the brand has been owned by the Retail Brand Alliance Corporation.
From the very first days of its existence, the company was engaged in tailoring exclusively high-quality clothes, the costumes created by it became especially famous. Among the company's clients were many famous personalities, including Abraham Lincoln and many other US presidents. Today, Brooks Brothers suits are a kind of symbol of business America.
