Lamb Chopped: The Story Behind Brooks Brothers’ Bankruptcy

Two years ago, at a black-tie gala held at the Jazz at Lincoln Center, nearly 1,000 guests gathered to commemorate Brooks Brothers' bicentennial anniversary. While sipping on themed cocktails named "Modern Classic" and "Golden Fleece," guests enjoyed an all-American jazz program befit for an all-American clothier. Since their founding in 1818, Brooks Brothers has defined classic American men's style, invented the ready-to-wear suit, and dressed nearly every US President. Brooks Brothers CEO Claudio del Vecchio, who has been widely credited with reviving the company since it fell out of favor under previous owner Marks & Spencer, told The New York Times that he's working to reinforce a culture. "I have to make sure that we are building a company that will last after me," he said while sitting at his 346 Madison Avenue office, where his polished mahogany desk faces an antique grandfather clock once owned by the store's founder, Henry Sands Brooks. "I don't want to be here another 20 years. Forget about another 200 years. It's really about trying to build a culture that will last longer than the business. That will make it very hard for the next guy to screw it up."
Last week, Brooks Brothers filed for Chapter 11 bankruptcy protection, making it the highest-profile men's clothier to do so during the coronavirus pandemic. The company says they plan to close about 51 of their stores, a decision they attribute to the toll of mass shutdowns. This comes on the heels of their announcement that they'll close all three of their US factories by the end of this summer. So far, Brooks Brothers has shut the lights at their Garland, North Carolina shirtmaking factory, which employs about 25% of the town's residents. The company's Southwick suit factory and New York tie factory have been reduced to producing masks, but they too will shutter unless the company can secure a buyer.
Soon, the fashion press will churn out stories about what went wrong at Brooks Brothers. I suspect theories will include something about rampant globalization, rapacious capitalism, corporate mismanagement, and mass-marketization. Brooks Brothers either failed to adapt to changing consumer tastes, or they adapted too much. For diehard trads, the decline of Brooks Brothers will undoubtedly be linked to the decline of Western civilization itself.
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