Denim brand True Religion successfully emerged from Chapter 11 bankruptcy proceedings on Monday.
The court-approved plan of reorganization “significantly reduced the company’s debt and provides the company with liquidity to execute upon its growth plans over the next several years,” True Religion said on Tuesday.
“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,” said True Religion CEO Michael Buckley, who served as president from 2006 to 2010, and rejoined the company as CEO in November.
Buckley said the denim brand slashed both its store count and employee base during the bankruptcy. “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,” he said.
Simon Property Group, the landlord for a number of True Religion stores, was cited as one of its essential partners in the denim company’s reorganization. Lenders Farmstead Capital Management and Crystal Financial were also noted for their work helping the brand to facilitate a turnaround.
True Religion filed its voluntary Chapter 11 petition in April, and Delaware bankruptcy court earlier this month gave its nod on the firm’s reorganization plan.
Founded by Jeff Lubell in 2002, the upscale denim brand was among the first of a number of fashion firms seeking bankruptcy court protection after Covid-19 decimated the retail landscape, though the filing marked True Religion’s second total bankruptcy petition after an initial Chapter 11 tour in 2017.
