By Marko Vidrih on The Capital
One of the leading US business clothing companies Brooks Brothers, which has been dressing the American elite for the past 202 years, has begun bankruptcy proceedings. A statement on protection against creditors last Wednesday came to a Delaware court, according to NYTimes.
Brooks Brothers is one of the oldest and most respected office clothing brands in the United States. Founded in 1818 as a family business, the company dressed many famous American politicians and representatives of large businesses. In particular, one of the company’s well-known customers was U.S. President Abraham Lincoln, who wore a black tailcoat custom-tailored by Brooks Brothers tailors, Bloomberg notes. At least 40 other American presidents used the costumes of this company.
The financial difficulties of the company sharply worsened amid the coronavirus pandemic. Introduced restrictive measures, self-isolation and quarantine brought down the demand for business clothes. According to the press, since the beginning of this year, more than 250 stores in North America have experienced an unprecedented decline in sales. And about 130 outlets of the brand with interruptions work outside the United States.
It is clarified that to date, business debts have reached $500 million, and its owners are actively trying to sell the company and are actively looking for a buyer for it.
The bankruptcy of the cult American company, which, contrary to the actions of its competitors, has so far produced part of the textile products at three factories in the USA and was very proud of the label Made in the USA, is an extremely unpleasant surprise for the US administration of Donald Trump.
The bankruptcy of Brooks Brothers, whose factories employ about four thousand people, will only increase the army of American unemployed, which currently numbers nearly 40 million people.
At the same time, dozens of American retailers were on the verge of bankruptcy due to a pandemic that caused a sharp drop in income and consumer demand for clothing and goods. Among them are the famous brands GNC, JC Penney, J Crew, Modell’s and many others.
Author: Marko Vidrih
Featured image credit: Unsplash
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Iconic Brooks Brothers Business Apparel Brand Goes Bankrupt was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.
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