True Religion Files for Bankruptcy Protection
U.S. denim retailer True Religion Apparel Inc. said on Wednesday it filed for bankruptcy protection and signed a restructuring agreement with a majority of its lenders. True Religion, a company whose denims have gradually fallen out of style, filed for creditor protection under Chapter 11 in the U.S. bankruptcy court in the District of Delaware, and listed assets and liabilities in the range of $100 million to $500 million. The restructuring agreement with lenders, including TowerBrook Capital Partners, will slash the company's debt by over $350 million, it said in a statement.
Total Retail's Take: True Religion joins the long list of retailers that have filed for bankruptcy protection this year. As of mid-June, more than 300 retailers have filed for bankruptcy in 2017, according to data from BankruptcyData.com. That's up 31 percent from the same time last year. True Religion is yet another retailer struggling to grow sales at its brick-and-mortar stores, and the expense of operating those stores has left the company in debt. Despite its current bleak financial standing, True Religion doesn't appear to be headed towards liquidation like some other big-name retailers this year (The Limited, The Wet Seal, hhgregg). The bankruptcy filing will enable True Religion to slash its debt, fully pay its creditors and, potentially, emerge a healthier company.