- Robyn Turk
True Religion announced this week that it has successfully emerged
from Chapter 11 bankruptcy, following a court-approval of its
reorganization plan. The plan significantly reduces the company’s debt
while providing liquidity to execute plans for growth.
The denim brand had filed for Chapter 11 in April of this year, as
the economic stress of the coronavirus pandemic affected the retail
True Religion cites its emergence from bankruptcy to its loyal
consumer base, dedicated employees and assistance from lenders and
vendor partners, such as Simon Property Group, Farmstead Capital
Management and Crystal Financial.
“We thank our new management team and all the company’s employees
for their dedicated support in turning this business around,” said
Michael Buckety, chief executive officer of True Religion, in a press
release. “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.”