Brooks Brothers, injured by Casual and Coronavirus Fridays, declares bankruptcy

Brooks Brother vistió a la clase empresarial estadounidense con rayas a rayas durante más de 200 años y sobrevivió a dos guerras mundiales y al cambio a la vestimenta informal. Pero no fue rival para la pandemia de coronavirus.

The company, which is owned by the Italian businessman Claudio del Vecchio, declared bankruptcy in Wilmington, Delaware, Wednesday.One of the few brands that manufactures clothing nationwide, plans to stop manufacturing in its three American factories on August 15 and will use the bankruptcy process to find a new owner.

Brooks Brothers joins a parade of American retailers who seek help in a bankruptcy court since March, including Neiman Marcus Group Inc., J.CREW GROUP INC.and JC Penney Co.The economic consequences of COVID-19 have also brought bankruptcy to high-profile companies in other industries, including Hertz Global Holdings Inc.and CHESAPEAKE ENERGY CORP.

From the neighborhood he blamed the pandemic for the company's current problems and said in an interview on Wednesday to temporarily close the stores during blockades largely reduced the income.However, the company still fulfilled its contractual obligations with workers, suppliers and other sellers.He said he wanted the government to have provided a lifeguard to the largest retailers as it did with small businesses.

"Through each era, we had challenges, but we hope we could overcome them," he said.“The retail sale has changed a lot in the last four or five years, and we were in the process of adapting to that new environment.When the coronavirus arrived, there really was no way to keep things ”.

While looking for a buyer and restructuring his debts, Brooks Brothers has obtained a loan of US $ 75 million debtor in possession of global Whp, according to a person familiar with the matter.Whp, backed by Oaktree Capital and Blackrock, is a brand management firm that owns Anne Klein and Joseph Abboud clothing brands.

Brooks Brothers faced challenges before the health crisis forced non -essential retailers to temporarily close their stores.The company had around US $ 1.000 million in revenues in 2019 and approximately a quarter of its sales came from electronic commerce.It has 500 stores around the world and approximately 200 in North America, after deciding to close about 50 locations due to pandemic.

American companies had become increasingly informal and less and fewer men bought costumes.Once people began to take refuge at home, they turned to even more informal clothing, like tracksuit pants.

As people begin to return to the office, it is not known if they will return to a more formal way of dressing.

“He visto una tendencia creciente hacia una vestimenta más informal, en parte porque así es como se visten nuestros clientes”, dijo Quyen Ta, socio de la firma de abogados King & Spalding LLP en la oficina de San Francisco."I have met with general advisors of public companies that are in sweatshirts".

Brooks Brothers hired the PJ Solomon Investment Bank last year to explore strategic options, including a possible sale, according to people familiar with the situation.He also received a loan of US $ 20 million from the liquidation firm Gordon Brothers, they added.The loan was the financial arm of the company, which is separated from the division that manages the liquidations, said one of the people.

Brooks Brothers are expected to attract buyers, other people familiar with the situation said.Authentic Brands Group LLC, a licensed company that has the names Barneys New York and Sports Illustrated, is a potential suitor, they said.

Founded in 1818, Brooks Brothers, a pioneer of the made costumes, reached the age of majority together with the nation.He started selling his clothes before the Erie channel opened and the Gold Fever of California began.His clothes have been used by dozens of US presidents, including Abraham Lincoln and Theodore Roosevelt, as well as by magnates ranging from Astors to Vanderbilts.

He introduced the first shirt with a buttoned neck in 1896, an idea that a grandson of the founder had when he saw a pole match in England.He realized that players' necklaces did not stir with the wind, because they were buttoned.Popularized other looks, such as the “repp” tie of reverse stripes, a version of the Great Britain regiment ties, as well as Harris Tweed and the Suteter Shetland.

Robert Herbst, a 62 -year -old lawyer, remembers that his father led him to buy a blue shirt and Blazer Brooks Brothers when he was about 7 years old. Más tarde, cuando se unió al bufete de abogados White & Case LLP, compró su primer traje Brooks Brothers.

As the movement to dress more informally gained strength during the 1990s and 2000s, Brooks Brothers tried to adapt.In 2016, Golden Fleece presented, a casual clothing line that included sweaters, jackets, sports shirts and pants.But he faced the competition of many upstarts.Today, custom clothing represents approximately a fifth of its sales and informal sportswear represents the rest, according to a spokeswoman.

Brooks Brothers was acquired by the British retail chain Marks and Spencer Group in 1988.Retail Brand Alliance Inc was sold in 2001., controlled by the SR.Del Vecchio, whose father founded Luxottica Group Spa, the Italian glasses.He changed his name to Brooks Brothers Group Inc.in 2011.

Restoring Brooks Brothers has been a Passion of SR.Del Vecchio, who fell in love with the brand while growing in Italy, according to a 2015 interview on the company's website.Brooks Brothers was the first store he visited when he arrived in the US at the age of 25."As a frequent client, I thought there were ways to improve quality," said the neighborhood in the interview.

He updated the fabrics, reviewed the supply chain and introduced new lines, including Black Fleece, a collection created by the avant -garde designer Thom Browne that was suspended in 2015.It also promoted the company to expand internationally.In 2001, the only international Brooks Brothers market was Japan.Today has a presence in more than 70 countries.

Del Vecchio said he wasn't sure what he would do after Brooks Brothers was sold."For now, I want to ensure a long life for this company," he said.