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True Religion successfully emerges from bankruptcy

Tom Shearsmith
21 October 2020

Global denim brand True Religion has has successfully emerged from chapter 11 bankruptcy, under a court-approved reorganisation plan that significantly reduced the Company’s debt and provides it with liquidity to execute growth plans.

It was the second time the company had filed for bankruptcy protection in three years, citing difficulties due to the Coronavirus pandemic.

Collaboration from lenders and other vendor partners in the bankruptcy case also proved pivotal. In the company's published statement, Simon Property Group, the landlord on a substantial number of True Religion’s retail stores, is mentioned as "an essential partner in the Company’s reorganisation".

True Religion’s lenders, including Farmstead Capital Management and Crystal Financial, also worked to reach an agreement and facilitate the company’s turnaround.

Michael Buckley, who rejoined the Company as Chief Executive Officer in November of 2019, commented: “We want to thank the Company’s loyal and diverse customer base, which remained faithful to the brand both prior to and during the pandemic. We are incredibly thankful and completely indebted to our customers who have showed us consistent support during a period that was challenging in so many ways.”

“We thank our new management team and all the Company’s employees for their dedicated support in turning this business around. 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 reorganisation 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.”

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