True Arbitration
Los Angeles–based premium-denim house True Religion Apparel Inc. announced that a ruling has been reached in arbitration proceedings between its subsidiary Guru Denim Inc. and Indigo Group USA, a garment contractor based in Gardena, Calif. The arbitration, which stemmed from claims that True Religion had breached a 2004 manufacturer’s agreement, ruled in favor of Indigo Group with an interim award of $1.5 million in damages, plus interest and costs. True Religion issued a statement saying that the costs of the award will approximate $0.05 per diluted share of the company’s stock and that the charge will be recorded in the second quarter ended June 30. The statement also said that “the outcome of the arbitration will have no bearing on the company’s future business or its manufacturing capabilities.”
