Image: True Religion

Image: True Religion


True Religion Out of Bankruptcy

The True Religion brand emerged from a Chapter 11 bankruptcy on October 19, according to a statement from Michael Buckley, the company's chief executive officer.

“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,” Buckley said. “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.”

Buckley also credited the brand’s exit from bankruptcy to Simon Property Group, the landlord on a great number of the brand’s retail stores, as well as its lenders Farmstead Capital Management and Crystal Financial.

True Religion filed for bankruptcy April 13 in the United States Bankruptcy Court for the District of Delaware. The brand said that its bankruptcy was caused by the business interruption due to the COVID-19 crisis. True Religion also had declared and emerged from a Chapter 11 bankruptcy in 2017.