Denim Brand True Religion Filed Bankruptcy Protection Application To Court

According to the world clothing shoes and hats net, this Wednesday, the American high-end cowboy. brand True Religion Apparel Inc. (hereinafter referred to as True Religion) filed an application for bankruptcy protection to Wilmington bankruptcy court in Delaware (Chapter 11), hoping to reduce debt and ensure normal operation of the company.

True Religion, headquartered in Manhattan beach, California, has 128 stores. The company is also selling high-end department stores such as Nordstrom, Bloomingdale 's and Sakes Fifth Avenue. In the past fiscal year, its sales accounted for about 75% of its total net sales.

The assets and liabilities of True Religion were 100 million US dollars and 500 million US dollars respectively. Almost all of the unsecured creditors of the former 30 listed in the column are suppliers or store owners. The top debt of the supplier came from Lya Group, Losangeles, with a total of $826 thousand and 500. The highest debt of the owner came from New York 513 Broadway Realty LLC, which amounted to $376 thousand and 300. True Religion borrowed $60 million from DIP from the US citizen bank.

True Religion has been included in the observation list of some credit rating agencies.

In court documents, True Religion management blamed the company's operational difficulties on sports. fashion With the flourishing development, more and more people give up cowboy clothes and wear sportswear and costumes on different occasions.

True Religion was once part of the American pop culture 10 years ago. A large number of celebrities are keen on wearing True Religion jeans, while hip hop singers will write True Religion into the song.

According to the plan of True Religion, its lenders will get a majority stake in restructured company, which will reduce the debt by 350 million US dollars to 1.4 billion US dollars. According to court documents, the company's goal is to break away from bankruptcy protection within four months.

True Religion's current owner, Private Equity Investment Firm TowerBrook Capital Partners (hereinafter referred to as TowerBrook) also approved the company's bankruptcy protection plan. In May 2013, TowerBrook bought a True Religion with a valuation of 835 million dollars (about 32 dollars per share). Before True Religion began to evaluate strategic options, the price was 52% higher than the company's October 9, 2012 stock price.

TowerBrook's investment in the consumer and retail sector also includes Jimmy Choo, Odlo, Kaporal, BevMo, Phase Eight and J.Jill.

Among them, J.Jill has just completed its initial public offering (IPO) earlier this year.

In May 2011, Towerbrook sold the UK luxury shoe brand Jimmy Choo, which holds 85% of the total value, to Labelux (later JAB) with a total valuation of 525 million. Recently, JAB has decided to quit fashion and luxury business, and is trying to find buyers for its two luxury brands, Jimmy Choo and Bally.

This year, the American fashion retailers and brands that filed bankruptcy applications to the court are far more than True Religion. It also includes: Papaya Clothing, Gymboree, Rue21, Gordmans, Gander Mountain, The Limited, American Apparel and American.

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