The group was severely impacted by the pandemic and is now the latest giant to collapse, as the quarantine and stay-at-home rules during the COVID-19 diffusion increased the problems of traditional retailers. Neiman Marcus Group Inc., J. Crew Group Inc. and John Varvatos Enterprises Inc. are some of the groups that have already filed for bankruptcy, and thousands of US stores are being reported as being permanently closed.

The pandemic has hit Brooks Brothers hard as people working from home meant less demand for workwear. The brand, with roughly 250 locations int he US and little more than 4 000 people before furloughing most of its workers amid the pandemic, was already facing decreasing sales before the pandemic and had a heavy debt.

Now, Brooks Brothers have filed for Chapter 11 bankruptcy in Delaware, which will allow the company to continue to operate while setting up a strategic debt payment plan. The company recorded assets and liabilities of at least 500 million US dollars and applied for a 75 million US dollars bankruptcy loan from WHP Global, which owns the Joseph Abboud and Anne Klein brands.

A Presidential Case

Considered the oldest US retailer, Brooks Brothers opened its first store in 1818, on the corner of Cherry and Catherine streets in Manhattan. Its suits have become a must have in Wall Street. Brooks Brothers is commonly cited as having dressed US presidents, like Abraham Lincoln. The store began international expansion in Tokyo in 1979 and opened more than 250 stores outside the USA. Stores began to lose relevance when consumers switched from more classic work clothes to more casual attire.