×
49 894
Fashion Jobs
NORDSTROM INC
sr. Technical Program Manager, Operations Engineering
Permanent · Seattle
NORDSTROM INC
Asset Protection Agent - Cascade Plaza Rack
Permanent · Beaverton
NORDSTROM INC
Operations Manager - Cedar Rapids, ia
Permanent · Cedar Rapids
NORDSTROM INC
Manager, Supply Chain Operations
Permanent · Riverside
NORDSTROM INC
Asset Protection Coordinator -Saturday–Monday 5am-5pm - Dubuque, ia
Permanent · Dubuque
NORDSTROM
Asset Protection - Security Ambassador - Tempe Marketplace Rack
Permanent · Tempe
NORDSTROM
Asset Protection Security Ambassador - Alderwood
Permanent · Lynnwood
BANANA REPUBLIC
Associate Manager, Cultural Influence & Public Relations
Permanent · New York
AEROPOSTALE
Senior Programmer Analyst - Supply Chain Systems, Sparc Group
Permanent · South River
ESTÉE LAUDER
Manager, Brand Growth Intelligence, Hair Care
Permanent · Blaine
ESTÉE LAUDER
Artistic Director Global Education Texture
Permanent · Blaine
ESTÉE LAUDER
Director Marketing Performance & Analytics
Permanent · Blaine
ESTÉE LAUDER
Retail Selling Specialist - Donna Karan - 16 Hrs - Brooklyn, ny
Permanent · New York
ESTÉE LAUDER
Quality Assurance Lab And Compliance Director
Permanent · Bristol
ESTÉE LAUDER
Manager, Category Procurement
Permanent · New York
ESTÉE LAUDER
Senior Manager , Category Procurement, Global Lead For Compacts And Pans
Permanent · New York
ESTÉE LAUDER
Quality Systems Manager
Permanent · New York
ESTÉE LAUDER
Manager, Brand Procurement - Glamglow
Permanent · Los Angeles
ESTÉE LAUDER
Director, Ecommerce Darphin North America
Permanent · New York
ESTÉE LAUDER
Senior Manager, Brand Procurement - Smashbox
Permanent · Culver City
ESTÉE LAUDER
Retail Beauty Sales Manager - Origins - 40 Hrs - Dillards Ingram Park - San Antonio, tx
Permanent · San Antonio
ATHLETA
sr Manager, Product Operations (Gsc)
Permanent · San Francisco
By
Reuters
Published
May 19, 2021
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Brooks Brothers' billionaire former owners are sued over its bankruptcy

By
Reuters
Published
May 19, 2021

The billionaire Italian family that until recently owned Brooks Brothers has been accused in a lawsuit of driving the retailer into bankruptcy instead of selling it, to avoid paying millions of dollars to an investor.


brooksbrothers.com


In a complaint on Monday, Hong Kong clothing maker Tal Apparel said Claudio Del Vecchio and his son Matteo pressured it to invest $100 million in Brooks Brothers in 2016, and promised it would be "made whole" if they later sold the retailer for less than $652 million.

The complaint said the Del Vecchios lined up "several" bids for Brooks Brothers in 2019, before the COVID-19 pandemic, but did not pursue them because they would owe Tal money, and even asked if Tal would take a "haircut" on any payment.

Instead, the family put Brooks Brothers into Chapter 11 last July, making Tal's original investment "nearly worthless," according to the complaint in Manhattan federal court.

The defendants include the Del Vecchios and Delfin SARL, a holding company for family investments including eye wear giant EssilorLuxottica and Mediobanca. Claudio Del Vecchio bought Brooks Brothers in 2001.

A person close to the Del Vecchios said: "The allegations in the complaint are false and we expect the court will dismiss the case." Delfin, which owns a small Brooks Brothers stake, declined to comment.

Tal is seeking $100 million of damages, less sums received from Brooks Brothers' bankruptcy estate.

The 70-year-old family-run firm said it makes one in six dress shirts sold in the United States, and Brooks Brothers had been its largest customer.

Forbes magazine said on Tuesday the Del Vecchio family is worth $27.9 billion.

Founded in 1818, Brooks Brothers is the oldest continually operating U.S. apparel brand, known for its suits, preppy clothing, and dressing 40 U.S. presidents including Abraham Lincoln, John F. Kennedy and Barack Obama.

A venture backed by licensing company Authentic Brands Group and mall owner Simon Property Group acquired Brooks Brothers in bankruptcy for $325 million.

The case is Castle Apparel Ltd et al v Del Vecchio et al, U.S. District Court, Southern District of New York, No. 21-04406.

© Thomson Reuters 2021 All rights reserved.