The two hundred and two years old apparel brand Brooks Brothers filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware. America’s oldest and the most prestigious retailer said COVID-19 pandemic, liquidity, and supply chain problems drove it to insolvency.
To fund its operations, the company has secured a commitment of $75 million in financing from brand management firm WHP Global, subject to court approval. In addition to this amount, Brooks Brothers have secured a loan of $20 million from Gordon Brothers in May.
The funds will help support the company to continue its operations while it looks for a buyer and pays claims of certain critical vendors and suppliers.
Known for their crisp oxfords and jaunty sports jackets, Brooks Brothers claim to have dressed 40 U.S. presidents, royalty, and countless bankers. With over 500 stores across the globe, the retailer now plans to close around 51 stores.