Brooks Brothers is going through bankruptcy as the luxury clothing retailer continues to search for a buyer.
Here’s what to know about the Brooks Brothers bankruptcy.
- The novel coronavirus pandemic has put an additional financial strain on the company.
- As a result, the company has been looking to reorganize its business.
- This includes plans to close 51 locations in the U.S.
- However, the company was already having problems before the pandemic began.
- It started a sale process last year and has been searching for a buyer.
- While there have been a few bites, reports say the buyers aren’t interested in the retailer with its current number of locations.
- It’s possible the closures could result in a buyer finally taking a plunge and picking up the company.
- The company plans to continue normal operations throughout the bankruptcy process.
- It’s already obtained $75 million in debtor-in-possession financing that will allow it to do so.
The coronavirus pandemic has had a strong effect on retailers. Many were already struggling as customers turn online for their shopping needs and Amazon (NASDAQ:AMZN) dominates that space.
These combined factors have resulted in more than a few companies filing for bankruptcy recently. Among these are Lucky Brand, which filed for bankruptcy on Monday. GNC (NYSE:GNC) also filed for bankruptcy recently and is looking to restructure its business. JCPenney (OTCMKTS:JCPNQ) filed for bankruptcy as well but has kept its stock trading outside of the New York Stock Exchange.
As of this writing, William White did not hold a position in any of the aforementioned securities.