WatchesMay 23, 2022
Steven Kaiser, Watch Industry Veteran and Beloved Mentor, Dies at 68 Kaiser, whose illustrious career spanned decades, died suddenly on Friday.
MajorsJul 09, 2020
Brooks Brothers Latest Retailer To File Chapter 11
The 202-year-old company, known for its classic suits, owns the Alexis Bittar and Carolee jewelry brands.
Brooks Brothers, which owns Alexis Bittar and Carolee, filed for Chapter 11 bankruptcy protection Wednesday. Pictured here are Carolee earrings from the fashion jewelry brand’s fall 2018 collection.
New York—Long hurt by Casual Fridays and hampered by COVID-19 in its efforts to find a buyer, Brooks Brothers and its fashion jewelry subsidiary have filed for bankruptcy protection.
The 202-year-old company, known for its stylish suits and preppy casuals, filed for Chapter 11 bankruptcy protection Wednesday in U.S. Bankruptcy Court in Delaware, with the goals of obtaining new financing and quickly finding a buyer.
“Like countless other retail companies, Brooks Brothers’ business has been impacted by significant operational and manufacturing challenges, as well as shifting retail industry trends in recent years,” said the retailer’s Chief Restructuring Officer Stephen Marotta of Ankura Consulting Group LLC in an affidavit filed Wednesday.
In 2019, Brooks Brothers began looking for a buyer or a merger opportunity but the onset of COVID-19 derailed that effort, making the storied-but-struggling retailer the latest to seek protection under Chapter 11.
“Our priority is to start this important chapter with a new owner that has appreciation for the Brooks Brothers legacy, a vision for its future, and aligns with our core values and culture,” Chairman and CEO Claudio Del Vecchio said in a company statement.
“Seeking protection to facilitate an efficient sale of the business is the best next step for the company to achieve its goals, over any other alternative.”
Brooks Brothers said it has secured commitments from investment company WHP Global for $75 million in debtor-in-possession financing, a type of financing extended to companies in distress overseen by the lender and subject to court approval.
The financing together with cash flows from ongoing operations will support it through the sale process, said the company.
The retailer is going to hold an auction where parties can submit qualified bids, and said it expects to complete the sale process in the next few months, pending court approval.
To our loyal customers. pic.twitter.com/OcAqFbu8v2
— Brooks Brothers (@BrooksBrothers) July 8, 2020
Filing alongside Brooks Brothers Group Inc. was jewelry subsidiary Deconic Group LLC, which manufactures, merchandises, markets, sells and licenses the Alexis Bittar and Carolee fashion jewelry brands.
The brands are sold online, at stores like Nordstrom and Bloomingdales, and through nine retail stores located in the Northeast, Midwest and in California. Deconic also leases an office and manufacturing facility in Brooklyn’s Industry City development and a showroom in Manhattan.
Brooks Brothers acquired Carolee LLC in 2001 and, under Carolee, Alexis Bittar in 2016. It overhauled its fashion jewelry business in 2017, relaunching as Deconic.
Deconic brought in approximately $15 million in
Editors' Picks
Sponsored by
revenue for the fiscal year 2019, accounting for less than 2 percent of overall sales for Brooks Brothers, court papers show.
Asked about the future of Deconic, a company spokesperson noted the bankruptcy filing is “a sale process, not a liquidation of Brooks Brothers or Deconic’s brands.”
“Deconic will continue to do business as usual for the time being [and] we do not expect this to interrupt our ability to deliver the brands Alexis Bittar and Carolee,” the spokesperson said.
RELATED CONTENT: The Latest on the Neiman Marcus, JC Penney Bankruptcies
Founded in 1818 as H. & D.H. Brooks & Co. in New York, Brooks Brothers is the oldest apparel company in the United States, it noted in the bankruptcy filing.
The company operates about 425 retail and factory outlet stores worldwide, including 236 in the United States.
Like so many retailers, it closed nearly all of its stores when the pandemic hit and furloughed 2,900 of its 4,025 employees worldwide.
It said Wednesday that 51 of its 236 U.S. stores, or 22 percent, have closed or are in the process of closing permanently, while the others will reopen “as local and state public health and government officials allow and as it is economical to do so.”
Asked about the future of Deconic, a company spokesperson noted the bankruptcy filing is “a sale process, not a liquidation of Brooks Brothers or Deconic’s brands.”
“Deconic will continue to do business as usual for the time being [and] we do not expect this to interrupt our ability to deliver the brands Alexis Bittar and Carolee,” the spokesperson said.
RELATED CONTENT: The Latest on the Neiman Marcus, JC Penney Bankruptcies
Founded in 1818 as H. & D.H. Brooks & Co. in New York, Brooks Brothers is the oldest apparel company in the United States, it noted in the bankruptcy filing.
The company operates about 425 retail and factory outlet stores worldwide, including 236 in the United States.
Like so many retailers, it closed nearly all of its stores when the pandemic hit and furloughed 2,900 of its 4,025 employees worldwide.
It said Wednesday that 51 of its 236 U.S. stores, or 22 percent, have closed or are in the process of closing permanently, while the others will reopen “as local and state public health and government officials allow and as it is economical to do so.”
More on Majors
The Latest
IndependentsMay 23, 2022
Long’s Jewelers to Open New LocationThe family-owned jeweler is relocating its Braintree, Massachusetts, store to a new space.
IndependentsMay 23, 2022
Luxury Goods Veteran Olivier Stip Joins Chicago Jeweler CD Peacock He will step into the retailer’s newly created role of chief development officer.
Brought to you by
Dive into GIA’s Pearl ExpertiseWhen it comes to knowing the identity and quality of your pearls, count on GIA as your independent pearl experts.
GradingMay 23, 2022
Gem-A Launches Digital Entry-Level Gemology CourseGemIntro is meant to give a broad introduction to gems and gemology.
Weekly QuizMay 19, 2022
This Week’s QuizTest your knowledge of the latest jewelry news with this quick test.
Recorded WebinarsMay 20, 2022
Watch: Responsible Sourcing and the Gold Supply Chain Three industry experts discuss “recycled” gold vs. mined, their challenges and benefits, and how jewelers can navigate the area.
FinancialsMay 20, 2022
Richemont’s 2022 Jewelry Sales in the Americas Nearly DoubleCartier, Van Cleef & Arpels, and Buccellati put on stellar performances.
Brought to you by
A.I. Grading is Changing Conversations at the Retail CounterAdvanced technology levels the playing field, helping jewelers give customers what they want.
AuctionsMay 20, 2022
Piece of the Week: ‘Birds in Flight’ by Oscar Heyman The New York jeweler made this incredible, colorful Art Deco bracelet featuring tropical birds in 1927.
SurveysMay 19, 2022
5 Predictions for Jewelry Retail in the Second Half of 2022From a slowdown in sales growth to rising costs, Fruchtman Marketing outlines its expectations for the second half of the year.
SourcingMay 19, 2022
De Beers’ Rough Sales Up 21% So Far This Year One analyst cited rising diamond prices and the sanctions on Alrosa as contributing factors.
CollectionsMay 19, 2022
Brilliant Earth Collaborates with Jade TrauThe two have partnered on a capsule collection.
FinancialsMay 18, 2022
Watches of Switzerland’s Jewelry Sales More Than Doubled in Q4The retailer also said demand for Rolex, Patek Philippe, and Audemars Piguet watches continues to exceed its supply.
AuctionsMay 18, 2022
Jewels from Bette Midler Are Headed to BonhamsThe auction house’s upcoming sale also includes collections from American heiresses.
IndependentsMay 18, 2022
Jeweler Lewis Baribault Celebrates 50th Work AnniversaryThe Connecticut jeweler reflected on five decades in the industry and what the future holds for the family business.
Events & AwardsMay 18, 2022
Visit A Mine in New Jersey With WJA New York MetroThe chapter has organized a day trip to the Sterling Hill Mine and Museum in Ogdensburg on Saturday, May 21.
SourcingMay 17, 2022
A New Source in Tanzania Is Producing Cobalt-Blue SpinelThe stones come from a deposit close to Mahenge and have been on the market for several months.
SourcingMay 17, 2022
‘Pop’ the Question With Stephanie Gottlieb’s New Diamond CutThe jewelry designer is partnering with popcorn brand Angie’s Boomchickapop on a whimsical diamond cut.
ColumnistsMay 17, 2022
What You Need to Know About the Google Analytics 4 RolloutIn the latest article from The Smart Lab, Emmanuel Raheb outlines the website changes jewelers can expect with this new software.
TechnologyMay 17, 2022
Virtual Diamond Boutique Uncorks the ‘Sales Genie’The new app allows salespeople to quickly and easily access a lot of inventory.
Events & AwardsMay 17, 2022
‘Cartier and Islamic Art’ Exhibition Opens in DallasFollowing its Paris debut, “Cartier and Islamic Art: In Search of Modernity” has landed at the Dallas Museum of Art.
IndependentsMay 16, 2022
Mejuri Plans to Triple Its Store Count This YearThe fine jewelry brand expects to open 17 new locations, mostly in North America.
IndependentsMay 16, 2022
Karats Jewelers Plans Expansion Into 30,000-Square-Foot StoreThe Kansas retailer is aiming for a fall 2023 opening.
MajorsMay 16, 2022
Pandora Announces Plans to Build Third Factory, First Outside ThailandIt will be located in Vietnam’s Binh Duong Province, and construction is slated to start early next year.
IndependentsMay 16, 2022
MJSA Has Released its 2022 Buyer’s GuideIt’s full of hundreds of contacts for jewelry-making supplies and services.
FinancialsMay 13, 2022
Brilliant Earth Reports Strong Q1 But Lowers 2022 GuidanceThe company is feeling the impact of the uncertain geopolitical and macroeconomic environment, said CEO Beth Gerstein.
AuctionsMay 13, 2022
Famed Watch Designer Gerald Genta’s Royal Oak Sells for $2.1MIt became the most valuable vintage Audemars Piguet watch ever sold at auction, according to Sotheby’s.
