Brooks Brothers, end: This is what the crisis in the fashion industry looks like The iconic and veteran fashion company, which dressed most of the presidents of the United States and was synonymous with American quality and timeless style, declared bankruptcy over the weekend.
Its collapse is indicative of the radical change brought about by the corona crisis in the Brooks Brothers Tailored suits Bankruptcy They survived the Civil War, two world wars, the Great Depression and even the changes that took place when it came to work dress code. But the corona virus seems to have overwhelmed them. Over the weekend, 202-year-old iconic American brand Brooke Brothers filed for bankruptcy, becoming the latest victim of a plague that is undermining U.S. retail business models and bringing American brands, including Jay Crowe and JC Penny, to bankruptcy. Meanwhile, owner, billionaire industrialist Claudio Del Vecchio, who bought the brand in 2001 for $ 225 million, is looking for buyers for three of the company's plants in the U.S., one closed in May and its employees fired, two still making virus-fighting masks instead of oxford shirts. If no buyer is found, their gates will be closed. Read more in Calcalist: This is how fashion houses held the 2021 winter shows in Corona because of the second wave: Fashion store revenues in malls fell by more than 7% in June New collaboration between Gap and Kenya West can save the chain Few American businesses have such a long, rich and resounding history Like the Brooks Brothers, who created an entire culture that may date longer than the brand itself. The brand that has dressed most U.S. presidents, including Lincoln, Kennedy, Obama and Trump, has over the years become "one of the most glorious presidential patrons," according to Lincoln, who was assassinated while wearing his coat. Barack Obama at his inauguration in 2009 wearing a Brooks Brothers suit and coat. A friend nicknamed "Patriotic Patriotic Patron" Barack Obama at his inauguration in 2009 wearing a Brooks Brothers suit and coat. The brand was founded in 1812 and began its production of uniforms and coats for soldiers. Politicians, intellectuals and even college students, all wore the brand that was synonymous with quality, timeless style and long-standing heritage. The Brooks Brothers were the first to offer ready-made tailor-made suits for men, and even if today it seemed obvious, in the early 19th century it was far-reaching, not to say radical, in an industry that was based on personal sewing. He was also the first to introduce the tie in 1890, leading trends in the textile industry, and later inventing the polo shirt and look of American college boys. Ralph Lauren, by the way, started out as a salesman at the brand's branch in New York. Like other companies, the Brooks Brothers' troubles began before the current crisis: the death of the office dress code and the move to casual, competition in a saturated market, loss of uniqueness and the move to online purchases have weakened it. Then came the plague and stores in particularly strategic and expensive locations were closed, festive events were canceled and the demand for suits became irrelevant, landing the final blow. All of these changes have hurt Brooks Brothers' most important asset: his status as a brand with an American heritage. Many of its customers cherish the company's history but beyond production in factories outside the US, Malaysia for example, to cut costs and try to meet changing market demands - keep the loyal audience away and not return young and new audience. Even before the plague, about a year ago, the company was offered for sale. It is estimated at $ 350 million, with a debt of about $ 600 million, and a recovery plan has been prepared for it. Out of 250 stores in the United States, 51 have already closed. Bankruptcy declarations may now help the company loosen rigid districts, reduce its debt and reduce production costs - making it more attractive to buy, and then US presidents will continue to look their best.
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