Brooks Brothers reportedly seeking financing for possible bankruptcy

One of the country’s oldest apparel retailers may be moving closer to bankruptcy.

Brooks Brothers is in talks with bankers about raising financing for a potential bankruptcy that could come as soon as July, reported CNBC. Founded in 1818, the company has more than 250 stores in the United States and Canada, with a global footprint that includes some 700 stores in more than 70 countries.  

While the COVID-19 has taken a heavy toll on sales as its stores went dark, Brooks Brothers has been struggling for some time under a heavy debt load and increased competition. It hired a firm last year to help it explore its options, including a sale or bankruptcy.

In May, Gordon Brothers, the Boston-based advisory, restructuring, and investment firm, announced it has provided a $20 million secured term loan facility to the retailer.