Brooks Brothers (USA), America’s oldest clothing retailer, has filed for Chapter 11 protection.
“We are seeking protection to facilitate an efficient sale of the business is the best next step for the Company to achieve its goals, over any other alternative,” said Claudio Del Vecchio, Chairman and Chief Executive Officer in a statement.
The filing came as no surprise. It was really a matter of ‘when’ not ‘if’ they would file.
The 200 year-old company has secured commitments for a debtor in possession (DIP) financing facility of $75 million from brand management firm WHP Global.
- Continues serving customers online and will proceed with plan to reopen majority of retail stores closed due to COVID-19.
- The Company will commence a competitive auction where parties can submit qualified bids. Timing details for the process will be made available in the coming days.
- Brooks Brothers expects to complete the sale process in the next few months, pending court approval.
- Brooks Brothers will continue to operate its business in the ordinary course throughout the court and sale process.
