True Religion undergoes resurrection
US denim brand True Religion has emerged from Chapter 11 bankruptcy protection after just four months, with key stakeholders agreeing to a reorganisation plan ratified by the Delaware Bankruptcy Court.
True Religion is now free to trade with a substantially reduced debt burden. Term loans have fallen from $471 million to $113.5 million with longer term maturity.
“With substantial debt burden removed, we are eager to turn our full attention to implementing our forward-thinking strategy, including improving our retail operations, new partnerships and growing the brand’s digital presence,” said CEO John Ermatinger.
“We would like to thank our consumers, our employees, vendors and suppliers for their unwavering support and continued dedication to the True Religion brand,” he added.
“With the consummation of this restructure, we are very excited and poised for the future.”
The company has also revealed a profit of of $13.6 million in the period to September, up 46 per cent on the same period last year.
True Religion was founded in 2002, focusing on “crafted denim” along with vintage-inspired knits, graphic t-shirts and activewear.