Iconic American suit maker Brooks Brothers files for bankruptcy

The coronavirus pandemic and associated store closures hurt sales, but the retailer was reportedly considering restructuring even before the virus hit.
Brooks Brothers also filed WARN notices to shutter its three US factories in May.
Visit Business Insider's homepage for more stories .

Brooks Brothers filed for Chapter 11 bankruptcy protection in the US bankruptcy court for the District of Delaware early Wednesday morning.

The retailer, often credited with inventing the American suit and which founded in 1818, is one of the oldest apparel brands in the country.

According to the New York Times , Brooks Brothers was considering restructuring even before the coronavirus pandemic hit, as annual sales were flat at around $1 billion for the years 2017 through 2019. The gradual shift to a more casual workplace hurt sales, and once many office workers began to telecommute due to the pandemic, demand for its workwear plummeted.

Brooks Brothers furloughed about 80% of its staff and temporarily closed all of its stores in response to the coronavirus pandemic. On May 21, Gordon Brothers announced it would be giving Brooks Brothers a $20 million secured loan.

It also permanently closed at least eight stores and in May filed WARN notices to shutter its three US factories, located in New York, North Carolina, and Massachusetts. If those factories were closed which reportedly could happen in July nearly 700 jobs would be eliminated.

Business Insider reached out to the company for comment but did not immediately hear back.

Brooks Brothers joins a growing group of retailers including JCPenney, J.Crew, and most recently, Lucky Brands , that have filed for bankruptcy in the past few months after being hit hard by the coronavirus pandemic and shifts in consumers' style.

NOW WATCH: Why thoroughbred horse semen is the world's most expensive liquid