(Photo: Brooks Brothers)

Brooks Brothers files for Chapter 11 bankruptcy

The men’s fashion company with a 200-year long history, Brooks Brothers, was founded in 1818 but is now filing for bankruptcy making the future of the company uncertain for now. Brooks Brothers have 500 brick-and-mortar store locations worldwide with 200 locations in North America that generated $991 million in sales last year.

The coronavirus (COVID-19) pandemic has impacted nearly every business and taking out some of the biggest names in the fashion industry due to lacking profits, including Brooks Brothers. The men’s fashion company officially filed for Chapter 11 bankruptcy for court protection from creditors as they continue seeking a new buyer.

Brooks Brothers filed for bankruptcy protection. The 202-year-old seller of business suits survived the shift to casual dressing, but it was no match for the coronavirus pandemic. https://t.co/Ar91eE7QcY via @WSJ

— Pat Fitzgerald (@PatFitzgerald23) July 8, 2020

The fashion industry is rapidly changing, especially in regards to operations and shifts in manufacturing in response to COVID-19 and Brooks Brothers have experienced an impact in business since the end of 2019. Brooks Brothers have already decided to close down 51 locations and is reviewing the possible closure of 200 more locations.

Brooks Brothers secured $75 million with debtor-in-possession financing from a brand management firm, WHP Global, that is also backed by BlackRock and Oaktree Capital. They also secured a $20 million loan in May, secured from Gordon Brothers.