Brooks Brothers files for bankruptcy

Brooks Brothers, the retailer known for dressing the great and good of the United States since 1818, filed for bankruptcy Wednesday, buckling under the pressure from the coronavirus pandemic following years of declining sales as customers embraced more casual apparel and sales shifted online.

The company, founded and based in New York, filed for Chapter 11 restructuring proceedings in the U.S. Bankruptcy Court for the District of Delaware. Claudio Del Vecchio, the Italian industrialist who bought the brand in 2001 and still owns the company, said in May that he would not rule out Chapter 11 as a possibility.

Brooks Brothers said in an emailed statement Wednesday that the filing would allow it to obtain additional financing as it facilitates a sale.

The bankruptcy represents the latest high-profile retail fall during the pandemic, which has caused widespread store closures and sales declines, reshaping the shopping streets of cities across the country.

Since May, major names like J.C. Penney, Neiman Marcus and J.Crew have all been pushed into Chapter 11 proceedings. The chains, including Brooks Brothers, plan to keep operating, though likely in a paredback fashion.

“Brooks Brothers is the most iconic American brand,” said William Susman, managing director at Threadstone Advisors. “While in a different form, I am confident the brand will survive and continue for years to come. This is a case of a failed company, not a failed brand.”

The company, which is the oldest apparel brand in continuous operation in the United States, said that it had decided to close 51 U.S. stores out of its roughly 250 locations in North America.