American oldest apparel brand files for bankruptcy

The health emergency impacted its profitability and liquidity position

Brooks Brothers

American oldest apparel brand files for bankruptcy. Source: flickr.com

According to LearnBonds, Brooks Brothers filed from bankruptcy after the pandemic hit its sales and disrupted the effort to fulfill business strategy changes.

The company revealed that the coronacrisis was the leading driver of that decision. Brooks Brothers has already started to close down 51 of its 250 stores across the US as a result of the proceeding.

The report states that the company is currently looking for the possibility of selling the business to a third party.

Brooks Brothers secured $75 million in debtor-in-possession financing. That’s a business loan provided to bankrupted companies in order to assist them in managing their operations while they negotiate with creditors.

We’ve reported that the coronavirus pandemic could cost the global economy more than $8.8 trillion.

SEE ALSO: