Brooks Brothers Has Just Taken Out a $20 Million Loan to Save Itself
Brooks Brothers, the oldest men's clothier in the United States, has just obtained a $20 million loan from investment firm Gordon Brothers.
The 202-year-old retailer has been struggling for quite some time amid declining sales and a large debt load, and the coronavirus outbreak has worsened the Brooks Brothers Group's state. The loan from Gordon Brothers is expected to buy the group more time as it explores several options.
“We are excited to provide a capital solution to one of the most iconic American apparel brands in the market today,” commented Ramez Toubassy, president of brands for Gordon Brothers. “With a heritage of over 200 years, global brand awareness, and broad consumer affinity, Brooks Brothers is a brand that is positioned to thrive for the long run.”
“Gordon Brothers’ experience with brand-focused financings allowed them to quickly and commercially put together a financing solution for Brooks Brothers that will allow us to execute upon our operating plan,” said Steven G. Goldaper, executive vice president and chief financial officer for Brooks Brothers Group.
According to rumors, Brooks Brothers is looking for a sale or filing for bankruptcy. Last week, it was reported that the retailer was considering closing three factories on the East Coast.
Retail has been especially hit hard by the effects of COVID-19. Early this month, J.Crew filed for bankruptcy. The retailer hopes to stay in business and emerge from bankruptcy as an intact company.