Brooks Brothers, which has dressed all but four U.S. presidents, could end up closing its three American factories as it navigates the pandemic, the New York Times reported. Brooks Brothers plans to lay off nearly 700 employees this summer at factories in Massachusetts, New York and North Carolina. The company is also trying to find buyers for the factories by mid-July, and expects to close them if it can’t. The plans emerged through filings under the federal WARN Act, which requires companies to give workers at least 60 days’ notice before mass layoffs or plant closings. Shortly after, Gordon Brothers, the expert in retail liquidations, announced it would provide a $20 million secured loan to Brooks Brothers. Together the decisions left two towns with factories worried about their futures, and raised questions around the core financial health of the company, especially when retail sales have dropped sharply and brands like J. Crew, Neiman Marcus and J.C. Penney have filed for bankruptcy protection.
