Brooks Brothers seeks buyer as Covid-19 takes its toll

Brooks Brothers j crew covid-19

The potential transaction could be part of a bankruptcy filing

Brooks Brothers is reportedly seeking a buyer after having extended a sale process which was initially set in motion at the end of last year.

The US fashion retailer, which has over 250 stores in the world with many in the UK, has felt the impact of Covid-19 as uncertainty took its toll on trading.

The potential transaction could be part of a bankruptcy filing, depending on the number of stores that the buyer wanted to take on, Business of Fashion reported.

Brooks Brothers has approximately $600 million (£475 million) in debt, and many of its close to 250 US-based stores had already been struggling before the onset of the coronavirus pandemic.

Despite this, the retailer has received interest from possible buyers.

Brooks Brothers is currently exploring “various strategic options” to position the company for growth and success.

With coronavirus restrictions now likely to be close to being lifted as death rates in the UK pass their peak, retailers are keen to begin their operations to revive the economy.

However, there are fears that it may take a while before shoppers return to normal levels post lockdown as Covid-19 takes a toll on consumer behaviours.

Meanwhile, fellow US fashion chain J Crew has become the first major US retailer to file for bankruptcy protection since the coronavirus lockdown was enforced.

The retailer which operates more than 500 stores, made the Chapter 11 filing – similar to CVA – to delay its financial obligations to creditors.

By Sahar Nazir -May 5, 2020

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