Brooks Brothers files for bankruptcy

Clothing company Brooks Brothers files for bankruptcy

Casual Fridays and the coronavirus have caused a 200-year-old company to file for bankruptcy.

Luxury clothier Brooks Brothers is the latest company to file for bankruptcy protection, The Wall Street Journal reported.

The company, which is owned by Italian businessman Claudio Del Vecchio, still makes clothes in the U.S. but warned last month that it could close three of its factories.

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Company officials also said it would lay off 700 workers in three states, CNN reported.

There are 500 stores worldwide, with 200 in North America.

The company is now on the lookout to find a buyer. It is also closing about 20% of its stores in the US and has received $75 million in financing to continue operations, CNN reported.

Brooks Brothers joined Neiman Marcus, J. Crew and J.C Penney in filing for bankruptcy protection amid the coronavirus pandemic. But its problems started before the virus took over the world as many corporate dress codes morphed into casual workplace dress. But the stay at home orders that came with COVID-19 had people not getting dressed in work attire to start their teleworking day.

Brooks Brothers was founded in 1818 in New York. Del Vecchio bought the company in 2001 and expanded to women’s clothing, children’s clothing and home items. Del Vecchio told The New York Times recently that he was planning on moving some U.S.-based operations overseas to cut overhead, CNN reported.