US denim tradesman True Religion files for bankruptcy
July 5, 2017 - fall Denim
True Religion Apparel Inc, whose heavily ornate denim jeans have depressed out of fashion, filed for failure on Wednesday with a understanding in palm to condense a debt of about $500 million and emerge from justice insurance fast as a going concern.
The tradesman joins American Apparel LLC, Payless ShoeSource Inc and other bondage in failure as shoppers increasingly buy online, branch divided from brick-and-mortar specialty shops and dialect stores, where True Religion creates a infancy of a sales.
In justice papers, a True Religion executive pinned a company’s financial problems on a expansion of “athleisure,” a pierce divided from denim to infrequent sports wardrobe outward of a gym. True Religion became a partial of renouned enlightenment a decade ago as celebrities donned a denim and hip bound artists cited a code in songs.
Under True Religion’s plan, a lenders will accept many of a equity in a reorganized company, whose debt bucket will tumble by $350 million to $140 million. The association aims to exit failure in about 4 months, according to justice papers.
True Religion’s owner, private equity organisation TowerBrook Capital Partners, has also authorized a company’s failure plans.
“We are holding an critical step to revoke a debt, energise True Religion’s iconic code and position a association for destiny expansion and success,” True Religion Chief Executive John Ermatinger pronounced in a statement.
The company’s restructuring devise provides for full remuneration of claims of a stability trade creditors, that includes vendors, suppliers and landlords.
True Religion has 128 sell stores, whose sales make adult roughly 75 percent of a sum net sales for a many new mercantile year. The association also sells a denim by dialect stores including Nordstrom, Bloomingdale’s and Sakes Fifth Avenue.
The Manhattan Beach, California-based tradesman cumulative a debtor-in-possession (DIP) loan from Citizens Bank for adult to $60 million.
The reward denim builder filed a Chapter 11 petition in U.S. failure justice in Wilmington, Delaware.
Reuters reported in Oct that a tradesman had hired a authorised confidant to try several debt restructuring options.
(Reporting by Subrat Patnaik in Bengaluru and Jessica DiNapoli in New York; Editing by Amrutha Gayathri and Steve Orlofsky)