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200-Year-Old Fashion Firm Brooks Brothers Filed For Bankruptcy

200-Year-Old Fashion Firm Brooks Brothers Filed For Bankruptcy

Brooks Brothers, a fashion brand founded in 1818, filed for bankruptcy on July 8. The retailer achieved more than $ 991 million in sales last year, having more than 200 stores in North America and 500 stores worldwide.

The Covid-19 pandemic has just brought one of America's oldest and most reputable retailers down. According to CNBC, 200-year-old fashion firm Brooks Brothers filed for bankruptcy under Chapter 11 of the US Bankruptcy Law on July 8.

The brand, founded in 1818, prides itself on providing costumes for 40 American presidents and countless investment bankers. Brooks Brothers achieved more than $ 991 million in sales last year, of which 20% came from online sales. The company has more than 500 stores worldwide with more than 4,000 employees.

The Covid-19 pandemic made Brooks Brothers' rental cost a burden, while sales that had been declining since last year were worse.
"Over the past year, the management team and the financial and legal advisory team evaluated various strategies to position the company's future success, including the 'sell yourself' option for In the process of evaluating this strategy, Covid-19 appeared and caused great damage to our business activities."
Representatives of Brooks Brothers said.

Many businesses, including Authentic Brands, expressed an interest in acquiring Brooks Brothers, but most of them wanted to buy the brand with fewer stores.
"We are looking for the right owner to lead the brand in the future. It is important that the acquisition unit is consistent with the core values, culture and ambition of Brooks Brothers."
Said the spokesman, a member of the company.

In early April, Brooks Brothers conducted a review of 250 North American stores and decided to close 51 stores. Before this company, many other retail chains such as JCPenney, Debenham, Neiman Marcus, were also forced to go bankrupt because Covid-19.

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