The CEO of Brooks Bros. Accused of Using Ch. 11 To Take Responsibility

By Rick Archer (July 13, 2022, 7:51 p.m. EDT) — Retailer Brooks Brothers’ litigation trustee has filed a lawsuit in Delaware against former CEO Claudio Del Vecchio, claiming he took the company to Chapter 11 to try to avoid millions of dollars in personal liability for an investment deal.

In a lawsuit filed Tuesday in the Delaware Chancery Court, William Reid IV accused Del Vecchio of ending years of using Brooks Brothers as “a personal asset and a flourishing vanity project” by putting the company in bankruptcy in order to avoid paying on a promise to personally guarantee a large investment.

“By the self-serving conduct summarized above, Del Vecchio violated his…

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