Another Giant Has Fallen, A Well-Known Retailer That Served 40 US Presidents

Local time 8, two well-known U.S. clothing retailers Brooks and Brooks group Bankruptcy news has been heard successively. Industry statistics show that the number of commercial bankruptcy applications in the United States is increasing rapidly and may deteriorate further in the third quarter. Meanwhile, the coming important sales season, the return season of students, is also facing great uncertainty, which may put the retail industry under greater pressure and drag down the development of the U.S. economy.

The two clothing retailers that recently announced that they are going to go bankrupt or have applied for bankruptcy protection are both well-known enterprises in the United States, Among them, ascenda owns many women's wear brands, such as Ann Taylor and loft. It will close at least 1200 stores, while Brooks brothers has a long history, which can be traced back to 1818.

Close at least 1200 stores! The U.S. retail giant is going to file for bankruptcy protection

According to Fox business channel, ascenda retail group, the parent company of well-known brands such as Ann Taylor and lane Bryant, is preparing to file for bankruptcy protection, And closed at least 1200 of its nearly 3000 stores in the United States.

The group may file for bankruptcy protection as early as this week and has reached an agreement with creditors to release about $700 million of its $1.1 billion debt, sources said. In exchange, creditors of ascenda retail group will be given control. The group closed its stores in mid March after the outbreak of new crown pneumonia in the United States.

Although the group started to restart some stores in early may as the U.S. states relaxed the epidemic control, the traffic volume was far below the normal level. Like other retailers, sales of ascenda group have plummeted due to the epidemic blockade, and according to the group's latest report, its revenue and cash flow have been "significantly reduced.".

Another giant is down! This well-known retailer with a history of more than 200 years has served 40 American presidents

According to CNN on August, local time, Brooks brothers, a man's clothing retailer with a history of more than 200 years, filed for bankruptcy in Delaware court 。 The new crown pneumonia epidemic led to a sharp decline in consumer demand for suits, which severely hit the company's operation.

In June, the Brooks brothers warned that they would cut nearly 700 jobs in three states and were looking for buyers, but it has been difficult to find them. According to reports, 250% of its stores are closing in the United States. According to the bankruptcy filing, Brooks brothers has received $75 million in financing to maintain its operations.

It is understood that the Brooks brothers opened their first store near wall street in 1818, He has provided clothing for 40 American presidents Many former presidents of the United States, including Lincoln and Roosevelt, were their loyal customers and were once almost the designated clothing suppliers of Wall Street bankers.

According to the statistics of EPIQ, a trade organization, since the beginning of this year, the number of new business failures in the United States has reached 3604, an increase of 26% compared with the same period last year. At the same time, Bankruptcy filings are accelerating The number of new cases in June this year was 609, with a year-on-year increase of 43%. Industry experts predict that with the continuous rise of the diagnosis data of new crown pneumonia, the output of American enterprises may further increase in the third quarter.

　　 Jim Millstein, CO chairman of Guggenheim Securities Co., Ltd I think at the end of the third quarter, you will see a wave of bankruptcies. If we can't control the epidemic, September and October will be real disasters.

In general, the second season of retail sales is regarded as the second big sales season in the United States. But this year, because of the epidemic, the U.S. retail industry is still facing great uncertainty.

In an annual back to school survey conducted by Deloitte in late May and early June, 66% of parents of American students said they were very anxious to send their children back to school this autumn. Deloitte expects U.S. sales of about $28.1 billion in the back to school season this year, which means there will be almost no year-on-year growth. Specifically, as many students may need to take online classes at home, the sales of electronic products may increase, but the expenditure on stationery such as clothing, shoes, notebook and schoolbag may decline.

The epidemic has brought great shock and uncertainty to the U.S. retail industry. A large number of bankruptcies and store closures have washed out some weak enterprises, which will weaken the market competition. In this market environment, the competition of the surviving strong will largely depend on innovation and investment in the future.