Brooks Brothers, founded in 1818, files for bankruptcy

Brooks Brothers, the retailer known for dressing the great and good of the United States since 1818, filed for bankruptcy Wednesday, buckling under the pressure from the coronavirus pandemic after years of faltering sales as customers embraced more casual apparel and sales shifted online.

The company, founded and based in New York, filed for Chapter 11 restructuring proceedings in the US Bankruptcy Court for the District of Delaware. Claudio Del Vecchio, the Italian industrialist who bought the brand in 2001 and still owns the company, told The New York Times in May that he would not rule out Chapter 11 as a possibility.

Brooks Brothers said in an emailed statement Wednesday that the filing would allow it to obtain additional financing as it facilitated a sale.

The bankruptcy is the latest high-profile retail fall during the pandemic. Since May, major names like J.C. Penney, Neiman Marcus and J.Crew have all been pushed into Chapter 11 proceedings. The chains, including Brooks Brothers, plan to keep operating, though likely in a pared-back fashion.

“Brooks Brothers is the most iconic American brand,” said William Susman, managing director at Threadstone Advisors. “While in a different form, I am confident the brand will survive and continue for years to come. This is a case of a failed company, not a failed brand.”

Brooks Brothers, known for its suits and preppy clothes, has been hit especially hard by the virus crisis. It is an era of remote work and job interviews through Zoom, and the postponement of celebrations like weddings, bar mitzvahs and graduations.

The company, which is the oldest apparel brand in continuous operation in the United States, said it had decided to close 51 US stores out of its roughly 250 locations in North America. Earlier this year, Brooks Brothers said it would close its 3 factories in the US — in New York City; Haverhill, Massachusetts; and Garland, North Carolina — spurring concern around the future of the brand and its identity as a “Made in America” name.

Brooks Brothers said in its Wednesday email that it expected to complete the sale “within the next few months.”

-The New York Times Company-

Overspending? Here are 7 ways to help cut expenses

MANILA - A quick click on the "buy" button of an online sale, a purchase of a small knickknack, or one eat-out too many--these all add up. Unplanned purchases can be excused every once in a while, but if this becomes a habit, you could fall prey to one of the more common obstacles to financial freedom: overspending.

Unfortunately, overspending can wipe out your earnings, prevent you from building a savings pot, or worse, plunge you into debt. Managing this requires taking deliberate steps to curb your desire to buy unnecessary items and services. It also comes with the realization that it’s not just the big-ticket purchases that can lead you to overspend. Small, seemingly harmless everyday purchases can also add up.

To help you rein in excessive spending, here are seven easy steps:

1. Set a fixed budget. Have a set budget for just about everything--your daily food expenses, utility costs, entertainment, and everything else. If you know that you tend to spend a lot in restaurants, having this budget will nudge you to choose those outlets with friendlier price points. For all you know, the set meal at the office canteen may turn out to be just as filling as the lunch set at that café in the corner, at just half of the cost.

2. Create shopping lists when going to the grocery or the market. Having a shopping list not only saves you time as you go around the store, it also ensures that you will only buy the things that you need. If you find this is too restricting, classify your purchases as must-haves (like meal ingredients for the week) and nice-to-haves (sweet snacks). If after the cashier rings up your must-haves, you find that still have room to buy the nice-to-haves, add them to your purchases one by one until you reach your budget cap.

3. Keep a diary of your expenses. When you follow steps 1 and 2, step 3 will be a breeze. Jotting down your expenses will let you know exactly where you are spending more than you should. Who would have thought that your morning espresso habit costs you P2,600 a month? The simple act of recording your expenses can tip you off that you are already close to breaching your monthly budget. Already spent P4,000 for your hair treatment? Then maybe the shoe purchase can be postponed to next month.

4. Live within, if not beneath, your means. Examine your lifestyle and identify patterns that cause you to overspend. Are you upgrading your smartphone just because “everybody’s doing it”? Perhaps you’ve gotten used to taking vacations abroad when you were still living with your parents, and you’ve carried this on even when you’re living on a fresh graduate’s income. Be true to your spending capacity. Identify alternative activities or products that you can afford and enjoy at the same time.

5. Use credit cards to track your spending. Credit cards are a very useful tool. It can help you manage your monthly spending and when needed, take advantage of pocket-friendly payment terms. If you have set a budget for yourself, your credit card can help you track your purchases for the month, or bridge the gap for utilities that must be paid against your tight cash flow. However, remember that your credit card limit is not additional spending money on top of your cash - always make sure you can afford the purchases you make, and pay your bill before due and in full as much as you can.

6. Don’t succumb to emotional shopping. A lot of mindless shopping happens when people are emotional--too tired, stressed, even hungry. If you’re one of these people, you may find out that your emotional outbursts are also causing a hole in your pocket. Be mindful of your emotions so that whenever you feel angry or tense, you would steer clear of retail outlets and do something else--like exercise, meditation, or plain relaxing at home.

7. Stay away from sales. Don’t lead yourself to temptation. If you can’t resist buying needless stuff, take a break from window shopping in malls, retail outlets, and even online shopping sites. "Out of sight, out of mind" is very true when it comes to shopping. Instead, find other activities to keep yourself busy. Hang out with a friend, spend an afternoon watching television or playing with your nieces and nephews, or read a good book.

When you master cutting back on expenses, the next step of building up savings will be a walk in the park. Good luck!

source: www.abs-cbnnews.com