Upscale jeans maker True Religion Apparel Inc. said Wednesday that it filed for bankruptcy reorganization, making it the latest Southern California apparel firm to falter as people embrace online shopping.
The company has filed for creditor protection under Chapter 11 in United States bankruptcy court in the District of Delaware. They listed assets and liabilities ranging between $100 and $500 million and the restructuring could cut the company’s debt by $350 million.
In wake of the decision, True Religion Chief Executive John Ermatinger stated, “After a careful review, we are taking an important step to reduce our debt, reinvigorate True Religion’s iconic brand and position the company for future growth and success.”
Founded in 2002, True Religion grew popular with its array of pricey designer jeans, and from 2007 through 2012, it nearly tripled in size, becoming a company with revenue of $490 million in 2013.
The company formerly was publicly held, but it went private in 2013 when it was acquired by TowerBrook Capital for $835 million.