David Rubin & Partners to oversee Brooks Brothers administration
US business attire retailer Brooks Brothers has seen its UK wing fall into administration, after suffering from a lack of demand for its products as people worked from home. Professionals from David Rubin & Partners will now look for buyers of the company’s remaining assets.
Founded in 1818, for many years Brooks Brothers was considered the top brand for business attire on the East Coast of the US. However, changes to the retail market have seen the firm come under increasing pressure in recent years, and it was already struggling before the coronavirus crisis, as business attire became less dressy – while an attempt to diversify into less formal apparel was not well received in the fashion business.
While in 2019, its global revenue still stood at $1 billion, however, the pandemic swiftly proved to be a bridge too far for the company. As stores shuttered, while many office workers taking to home working no longer needed to wear a formal suit during businesses hours, revenues entered a terminal decline. As a result, by July 2020, the US parent firm of Brook Brothers had filed for Chapter 11 bankruptcy protection.
While it was soon bought for about $325 million by a joint venture between Authentic Brands and Simon Property, the UK division of the famous business wear retailer has now fallen into administration. The apparel retailer was hit by the dual impact of closures during lockdowns and a lack of demand for its products while people work from home.
Asher Miller and Stephen Katz of David Rubin & Partners were appointed the company’s administrators. Miller said he was interested in selling the business to interested parties, and that while retailer’s Regent Street lease was surrendered last month, the administrators will open three stores at the 02 Arena in London, Westfield in West London, and Bicester – as nonessential retail reopens later in April.
Speaking to UK business news source Bisnow, Miller commented, “The reason for my appointment as administrator of the UK company is of course that with the prolonged closure of non-essential retail, despite the directors’ best efforts and regular communications with landlords and local creditors, mounting rent arrears and the problems of the worldwide group have led to the decision to place Brooks Brothers UK into administration.”
