Is Brooks Brothers the next retail bankruptcy?

Authentic Brands and Simon rumored to plan to eye buying company

National /
Jun.June 15, 2020 09:15 AM
Authentic Brands Group CEO Jamie Salter (blue) and Simon Property Group CEO David Simon (red) (Getty)

Authentic Brands Group CEO Jamie Salter (blue) and Simon Property Group CEO David Simon (red) (Getty)

Brooks Brothers might be the next major retailer to go through bankruptcy.

Authentic Brands Group and Simon Property Group are in talks to buy the chain if it files for Chapter 11, according to Bloomberg. Simon, the biggest mall landlord in the country, has a strong interest in keeping its major tenants alive, while Authentic has a history of buying established brands in tough situations.

High-end retailers like Brooks Brothers were facing a tough market even before the pandemic forced widespread store closures, with companies including Barneys New York and Dean & DeLuca filing for bankruptcy. Relaxed dress codes also hurt Brooks Brothers’ business, and the cancellation of weddings and other events this year reduced demand for formal clothing.

Authentic and Simon have previously teamed up to buy Forever 21 and Aeropostale, and Authentic bought Barneys New York out of bankruptcy on its own.

Brooks Brothers opened its first store in 1818 in lower Manhattan, at Catherine and Cherry streets, and British merchant Marks & Spencer bought the company in 1988. In 2002, billionaire Claudio del Vecchio purchased the brand. [Bloomberg — Eddie Small


Related Articles

arrow_forward_ios
Century 21 president Marc Benitez (LinkedIn; iStock)
Return of the retailer: Century 21 relaunches
Return of the retailer: Century 21 relaunches
Best Buy has closed about 20 of its big-box stores in each of the past two years (iStock)
Best Buy lays off 5,000 staffers, increases store closures
Best Buy lays off 5,000 staffers, increases store closures
421-427 East 14th Street (Google Maps, iStock)
Stuy Town to get new 17K sf grocery store
Stuy Town to get new 17K sf grocery store
The bankruptcy filing was made to protect the value of the Denizen. (The Denizen)
All Year LLC opts for bankruptcy to stop Bushwick foreclosure
All Year LLC opts for bankruptcy to stop Bushwick foreclosure
Kohl's investors have a list of changes they want implemented. (Getty)
Activist investors urge Kohl’s to cut real estate, inventory
Activist investors urge Kohl’s to cut real estate, inventory
David Umansky of Civic Builders and 720 Livonia Ave in Brooklyn (Photos via Google Maps, Civic Builders)
Charter school developer buys Brooklyn site out of bankruptcy
Charter school developer buys Brooklyn site out of bankruptcy
The American Dream mall in East Rutherford, New Jersey (Getty)
Bonds for troubled American Dream mall up 25% this year
Bonds for troubled American Dream mall up 25% this year
Brian Kingston of Brookfield Property Partners (left) and Bruce Flatt of Brookfield Asset Management
Brookfield’s internal affairs
Brookfield’s internal affairs
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...