LOS ANGELES--(BUSINESS WIRE)--Iconic apparel brand True Religion successfully emerged from chapter 11 bankruptcy on October 19, 2020, under a court-approved plan of reorganization that significantly reduced the Company’s debt and provides the Company with liquidity to execute upon its growth plans over the next several years. Even amid a global pandemic, True Religion’s strong brand identity enabled the development and confirmation of a plan of reorganization that paves the path for its continued success. This could not have been achieved without its devoted customer base, dedicated employees and in partnership with its wholesale partners, lenders and vendors.
Michael Buckley, who rejoined the Company as Chief Executive Officer in November of 2019 to execute the necessary changes to achieve the Company’s full potential across its various channels, previously served as President of True Religion from 2006 to 2010 during the company’s rapid growth phase, commented: “We want to thank the Company’s loyal and diverse customer base, which remained faithful to the brand both prior to and during the pandemic. We are incredibly thankful and completely indebted to our customers who have showed us consistent support during a period that was challenging in so many ways.”
Buckley continued, “We thank our new management team and all the Company’s employees for their dedicated support in turning this business around. Although we had to make the very difficult decision to lower our overall store count and employee base, our successful emergence from bankruptcy as a stronger company is a testament to the contribution of all of our employees throughout the brand’s history. The reorganization has allowed the company to reduce its operating costs and lower its debt load, and emerge a profitable, lean operating company with a healthy balance sheet. The path is now clear for True Religion to continue its reinvigoration of its iconic American brand.”
Collaboration from lenders and other vendor partners in the bankruptcy case also proved pivotal. Simon Property Group, the landlord on a substantial number of True Religion’s retail stores, was an essential partner in the Company’s reorganization. True Religion’s lenders, including Farmstead Capital Management and Crystal Financial, also worked tirelessly to reach an agreement and facilitate the company’s turnaround. “We are grateful for the tremendous support and collaboration from Simon Property, Farmstead Capital Management, and Crystal Financial, among others, without whose partnership and belief in True Religion’s prospects we would not be embarking on this exciting next chapter in the Company’s journey.”
About True Religion Apparel, Inc.
In 2002, True Religion emerged onto the Los Angeles denim scene by blowing up the construction of the classic five-pocket jean. With its five-needle thread at two-stitch-per-inch process, the True Religion Super T stitch was instantly recognized for style that was unlike any other denim brand in the world. True Religion speaks to the uniqueness found in all of us. The brand is worn by athletes, musicians, and artists globally to express their individual style. Delivering an exclusive assortment of iconic styles, True Religion Brand Jeans focuses on producing high quality premium denim and sportswear for men, women and kids.
