The novel coronavirus (COVID-19) has done a number on the U.S. economy, and big name retailers aren’t being spared. Lucky Brand and and Brooks Brothers are the latest retailers to file for bankruptcy following pandemic closures.
Lucky Brand, a retailer of premium vintage jeans, which was founded in the 1990s in Los Angeles, California, filed Chapter 11 bankruptcy on July 3 in the District of Delaware.
In a statement Interim CEO Matthew Kaness said, “The COVID-19 pandemic has severely impacted sales across all channels.” They will be closing 13 of it’s 200 stores and are planning a sale to SPARC Group.
Brooks Brothers filed Chapter 11 on July 8. Founded in New York in 1818, Brooks Brothers only recently celebrated their 200th anniversary. The clothing retailer boasts having dressed all but four U.S. presidents.
America’s oldest retailer is seeking a buyer and will be closing 51 out of its 250 stores, according to New York Times reporting. Despite surviving two world wars and the Great Depression, Brooks Brothers couldn’t weather this pandemic.
The company cited stagnant profits since 2017 and changing shopping trends, with consumers switching to online shopping rather than in-store.
Lucky Brand and Brooks Brothers are just the latest name brands to fall to the economic impact of COVID-19. Earlier this year, Neiman Marcus, 24-hour Fitness, and even Chuck E. Cheese announced bankruptcies, among others.
And while a few dozen big name companies have crumbled so far, small business are dropping by the thousands. According reporting by the Washington Post, more than 100,000 small businesses have already folded. And we’re likely to see more closing in a domino-like effect as the pandemic rages on.