Ian Patrick, FISM News
The established clothier Brooks Brothers filed for Chapter 11 bankruptcy on Wednesday, thanks to the shutdowns caused by the coronavirus pandemic. Starting in 1818, the Brooks Brothers company proudly touts a historic and innovative American style.
As defined by the United States Courts, Chapter 11 bankruptcy provides a company or individual the chance to reorganize the respective business. If all goes well, this business would be able to survive and gradually pay any outstanding credits.
According to a CNBC report, Brooks Brothers has begun to close 51 of its North American stores. Talks have been underway since the start of April on which stores in this region should be closed. The products are being shuffled to distribution centers, and the company is meeting to decide when and how to open these stores back up. Brooks Brothers has also secured financing and loans from other firms and companies which it is using to prop up the business as it reorganizes.
Brooks Brothers joins a slew of other retailers, including J.C. Penney, Neiman Marcus, and J. Crew, who have filed for bankruptcy in recent months.
Sourced from Reuters, BrooksBrothers, CNBC