True Religion Apparel Inc. Files For Chapter 11 Bankruptcy
True Religion Apparel Inc. said Wednesday that it filed for bankruptcy reorganization, a move many companies might be moving to with the shift in consumers to online shopping.
True Religion Chief Executive John Ermatinger said in a statement, “We are taking an important step to reduce our debt, reinvigorate True Religion’s iconic brand and position the company for future growth and success,” and mentions transitioning their focus to online.
The company reached an agreement with TowerBrook Capital Partners, a private equity firm, to slash True Religion’s debt by about three-quarters as it continues operating. True Religion and Last Stitch have 140 brick and mortar stores and almost 2,000 employees, though the company had to close 20 stores last year alone to cut costs.
This obviously isn’t the end of the brand, but the bankruptcy file was a smart move for cutting and consolidating their debt. Spokespeople for the brand have said that they are looking to move toward an online emphasis, so True Religion fans can look forward to a fabulous online shopping experience once all is said and done.