Brooks Brothers, one of the oldest apparel retailers in the United States, filed for bankruptcy protection on Wednesday, as the coronavirus pandemic continues to impact businesses.
In a statement, the company said it has commenced Chapter 11 cases in the United States Bankruptcy Court for the District of Delaware to facilitate a value-maximizing sale process.
It has secured commitments for a debtor-in-possession financing facility of USD75 million from WHP Global, a New York-based firm that owns and develops global consumer brands, subject to court approval.
This capital, together with cash flows from ongoing operations, would provide liquidity to support the company through the sale process, according to the statement.
Established in 1818, Brooks Brothers was the first American brand to offer ready-to-wear clothing and has continued throughout history with a wide range of iconic products. It has about 500 stores worldwide.
The 202-year-old company was among the big retail names that have stumbled into bankruptcy during the coronavirus disease 2019 (Covid-19) crisis.
- Crew, Neiman Marcus, JCPenney have all filed in recent months, partly citing headwinds from the pandemic.
More than 3 million confirmed Covid-19 cases have been reported in the United States as of Wednesday afternoon, with the death toll from the disease topping 132,000, according to data from Johns Hopkins University.
Source: Philippines News Agency