Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

No company is safe from Covid-19: the 6 luxury brands filing for bankruptcy

No company is safe from Covid-19: the 6 luxury brands filing for bankruptcy

Which brands has Covid-19 shut down? More than you think, with many of the most prestigious, including Neiman Marcus and Lord & Taylor, filing for bankruptcy after more than a century

It will not have escaped your attention that businesses are struggling at the moment. Among them, luxury brand after luxury brand is filing for bankruptcy after being hit by widespread belt tightening. For a lot of companies, particularly those that rely on brick and mortar retail, Covid-19 has only compounded what was already a grim situation.

Of course, filing for bankruptcy and actually going out of business are different things, and other companies are just hoping to buy time to get themselves back on their feet.

Here are some of the biggest luxury victims of the pandemic so far.


A Brooks Brothers ensemble.


The most classic of American men’s tailoring brands, Brooks Brothers, filed for bankruptcy in early July. Over the brand’s incredible 202-year history, it has dressed stars from Will Smith to Andy Warhol, provided the costumes for dozens of well-known films and TV shows such as Mad Men and dressed numerous presidents, including Abraham Lincoln and Barack Obama.

It is now owned by Italian businessman Claudio Del Vecchio, the son of Luxottica eyewear billionaire Leonardo Del Vecchio, who is trying to sell it. Brooks Brothers was already struggling before the pandemic, affected by the increasing trend towards less formal dressing, which has only been exacerbated in the era of lockdowns and Zoom.


Lord & Taylor's flagship store on 5th Avenue in Manhattan, New York City in 2018.


That other incredibly high profile casualty of the pandemic, US retail giant Neiman Marcus, is even older than Brooks Brothers at a prestigious 113 years. The company, which also owns retail brands including Bergdorf Goodman and luxury e-commerce site Mytheresa, was already suffering thanks to a debt of around US$4 billion it was required to service, which was costing the company about US$300 million per year.

Along similar lines, Lord & Taylor, the US’s oldest department store chain with a history dating back to 1826, filed for bankruptcy in August.

Among younger brands, celebrity favourite Sies Marjan, beloved by the likes of Beyoncé and Jennifer Lopez, closed its doors in June after just five years in business. Owned by Dutch designer Sander Lak, the former design director of Dries Van Noten, it had made a name for itself with bold, social media-friendly pieces in a daringly bright and broad colour palette.


Centric Brands Inc., which filed for bankruptcy in May, will carry on under the new ownership of a group of private equity firms. The company, which recently bought Zac Posen, creates products under licence for more than 100 brands, including Tommy Hilfiger, Under Armour, Calvin Klein, Nautica, Kate Spade, Frye, Jessica Simpson, Timberland, Hervé Léger and Michael Kors.


Tokyo’s Renown, which owns brands including D’Urban and Arnold Palmer, went into liquidation in November. The company entered bankruptcy proceedings in May, but was unable to turn its business around, declaring 13.9 billion yen (US$133 million) in liabilities in its bankruptcy filing.

Majority owned by China’s Shandong Ruyi since 2010, a diverse company that also owns Bally, Aquascutum and SMCP, as well as being China’s largest textile manufacturer, Renown had been struggling for a while as it failed to adapt to the e-commerce era and to sufficiently address the growing China market, recording a 6.7 billion yen (US$65 million) net loss last year.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
Italy Faces Population Decline Amid Youth Emigration
Trump Accuses China of Violating Trade Agreement
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Russia Accuses Serbia of Supplying Arms to Ukraine
Gerry Adams Wins Libel Case Against BBC
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
EU Majority Demands Hungary Reverse Anti-LGBTQ+ Laws
Top Hotel Picks for 2025 Stays in Budapest Revealed
Iron Maiden Unveils 2025 Tour Setlist in Budapest
Chinese Film Week Opens in Budapest to Promote Cultural Exchange
Budapest Airport Launches Direct Flights to Shymkent
Von der Leyen Denies Urging EU Officials to Skip Budapest Pride
Alcaraz and Sinner Advance with Convincing Wins at Roland Garros
EU Ministers Lack Consensus on Sanctioning Hungary Over Rule of Law
EU Nations Urge Action Against Hungary's Pride Parade Ban
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
U.S. Considers Withdrawing Troops from Europe
Russia Deploys Motorbike Squads in Ukraine Conflict
Critics Accuse European Court of Human Rights of Overreach
Spain Proposes 100% Tax on Non-EU Holiday Home Purchases
German Intelligence Labels AfD as Far-Right Extremist
Geert Wilders Threatens Dutch Coalition Over Migration Policy
Hungary Faces Multiple Challenges Amid EU Tensions and Political Shifts
Denmark Increases Retirement Age to 70, Setting a European Precedent
Any trade deal with US must be based on respect not threats', says EU commissioner
UK Leads in Remote Work Adoption, Averaging 1.8 Days a Week
Thirteen Killed in Russian Attacks Across Ukraine
High-Profile Incidents and Political Developments Dominate Global News
Netanyahu Accuses Western Leaders of 'Emboldening Hamas'
Ukraine and Russia Conduct Largest Prisoner Exchange of the War
×