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 once-trendy manufacturer also was frayed by design missteps and boring store displays as fickle shoppers sought out the next new thing.
True Religion said that in tandem with filing under Chapter 11 of the bankruptcy laws, its owner, TowerBrook Capital Partners, a private equity firm, reached a proposed deal with lenders to slash True Religion’s debt by about three-quarters as it continues operating.
“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,” which includes putting more resources into its online efforts, True Religion Chief Executive John Ermatinger said in a statement.
The Manhattan Beach-based firm, which employs 1,900 people, sells its jeans and other clothing in 140 stores with the True Religion and Last Stitch brand names, and through other boutiques and department stores. The company said it closed 20 of its stores last year to cut costs.
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.
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