Brooks Brothers was struggling even before the pandemic, as it became 'out of step' with a new generation's business fashion sense

• Brooks Brothers filed for bankruptcy on Wednesday.
• The coronavirus pandemic has hurt the retailer's business, but the company has been considering strategic options for about a year.
• "It has become increasingly out of step with a new generation of consumers who are looking for a more edgy approach to smart casual," Neil Saunders, managing director of GlobalData Retail, said in emailed comments.

On Wednesday, Brooks Brothers, the famed maker of suits that was founded in 1818, filed for Chapter 11 bankruptcy and said it would be pursuing a sale.

Like other apparel retailers, Brooks Brothers' business was disrupted by the spread of the coronavirus. It said on Wednesday it had made the decision to close 51 stores due to the pandemic. Still, it has faced struggles for some time.

CEO Claudio Del Vecchio, who also owns the company, told the New York Times in June that annual sales were flat at around $1 billion between 2017 and 2019, and that the retailer had "less than" $300 million in debt.

The company has been considering its options for about a year.

"Brooks Brothers' board, leadership team, and financial and legal advisors have been evaluating various strategic options to position the Company for future success, including a potential sale of the business," a company spokesperson told Business Insider on Wednesday.

"During this strategic review, COVID-19 became immensely disruptive and took a toll on our business."

The retailer's marketing has historically emphasized quality and a "Made in America" tradition. All but four US presidents have made appearances wearing Brooks Brothers, and some — including Barack Obama and Donald Trump — have worn suits from the brand at their inaugurations, the Times reported.

Some industry experts say that Brooks Brothers' sales struggles are due to shifts in what consumers are looking for in their clothes.

"Its formal, old-school approach found favor among mature and more traditional demographics, but it has become increasingly out of step with a new generation of consumers who are looking for a more edgy approach to smart casual," Neil Saunders, managing director of GlobalData Retail, said to Business Insider in an email interview, adding that shoppers have moved towards brands like Vineyard Vines, J. Crew, and Kiel James Patrick.

He continued: "This dynamic, along with the increased casualization of workwear — which has seen a shift away from suits and ties — has made it increasingly difficult for Brooks Brothers to drive growth."

American workplaces have grown significantly more casual in recent years, with even major Wall Street banks relaxing their dress codes and no longer requiring suits. Outside of the office, many have opted for athleisure and other athletic-inspired clothing instead of more formal wear.

These dynamics don't look to change anytime soon, as many continue to work from home instead of commuting in to offices and as in-person social events are canceled amid the pandemic.

GlobalData Retail found that year-over-year sales of men's formal clothing fell by 74% during April, May, and June, while men's smart casual apparel sales decreased by 62%.

But, Brooks Brothers' strong brand is likely to help it in its next phase.

"The brand has a solid foundation on which a new owner can build, and it has a good digital business that has the potential for future growth," Saunders said.

"However, the process of reinvention will not be easy; it will take time, capital, and effort to reconfigure Brooks Brothers into a retailer ready to serve the needs of modern consumers."