Brotherly Love
Brooks Brothers gets $20 million loan from Gordon Brothers as it continues to weigh options.
Brooks Brothers has found a white knight.
Gordon Brothers, the Boston-based advisory, restructuring and investment firm, has provided a $20 million secured term loan facility to Brooks Brothers Group Inc.
As reported, the 202-year-old retailer has been struggling with declining sales and a reported $600 million debt load. The company last year retained PJ Solomon to explore its options, including a sale. Earlier this week, news surfaced that the company will likely close its three remaining factories in the U.S. Rumors are also rampant that Brooks Brothers is considering a bankruptcy filing. With the $20 million loan from Gordon Brothers, that option may be off the table for the time being.
“We are excited to provide a capital solution to one of the most iconic American apparel brands in the market today,” said Ramez Toubassy, president of brands for Gordon Brothers. “With a heritage of over 200 years, global brand awareness and broad consumer affinity, Brooks Brothers is a brand that is positioned to thrive for the long run.”
Steven G. Goldaper, executive vice president and chief financial officer for Brooks Brothers Group, added: “Gordon Brothers’ experience with brand-focused financings allowed them to quickly and commercially put together a financing solution for Brooks Brothers that will allow us to execute upon our operating plan.”
Brooks Brothers and Gordon Brothers declined further comment on the terms of the deal.
Gordon Brothers, which was founded in 1903, acquires, restructures and invests in under-leveraged, distressed, or dormant intellectual property around the world. It has relaunched brands including Polaroid, Wet Seal, Jonathan Adler, Rockport and Bombay & Co. and most recently sold Bench, the British streetwear label, to its U.K.-based licensee, Apparel Brands Ltd. It also recently acquired another iconic fashion brand: Laura Ashley.
Brooks Brothers, which was founded in 1818, reportedly has sales of more than $1.1 billion and operates more than 250 fullprice and outlet stores in the U.S. and more than 700 international units in 50 countries.