AUGUST 13, 2020 — COMPANY ACQUIRED BY CONSORTIUM
It appears that Brooks Brothers has been acquired by the Authentic Brands Group and the SPARC Group (a venture of shopping mall operator The Simon Property Group) for $325 million. The consortium has bought other brands such as Frye, Juicy Couture, and Aeropostale. The deal requires the company to retain 125 physical store locations. Final Court approval is pending and likely to be completed by the end of August 2020.
JULY 16, 2020 — Original post…
New York, New York-based Brooks Brothers, the iconic men's clothier owned by Italian billionaire Claudio Del Vecchio, has filed for Chapter 11 bankruptcy protection.
The company has been severely impacted by a changing corporate culture with less dependence on men's suitings, especially on casual Fridays. That and the mandated closure of non-essential stores have severely impacted cash flow.
Employees at the company's three factories located in Haverhill, Massachusetts, Garland, North Carolina, and Long Island City, New York, and the company's 250 stores are at risk.
One likely scenario sees the iconic brand sold to another clothing retailer or luxury brand that will preserve the band. Look for an intense bidding war for the brand.
This will not be the first time the company's ownership may change. In 1988, the company was acquired by the British retailer Marks and Spencer Group. In 2001, the company was sold to Del Vecchio's company Retail Brand Alliance. In 2011, the company was renamed the Brooks Brothers Group.
Del Vecchio comes from money and is familiar with luxury and branded merchandise as his father founded Luxottica Group, the largest eyewear enterprise in the world.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?