Up-Scale Denim Store Files for Bankruptcy
Posted on Jul 18, 2017
True Religion Apparel Inc. has filed for bankruptcy, according to the Los Angeles Times, making the brand another LA store to fall due to the increase of online shopping..
Their "boring" store displays and design mishaps prevented the brand from making enough sales to stay in business.
The company filed for chapter 11 bankruptcy, however, TowerBrook Captial Partners, its owner, presented an idea to its lenders to cut True Religion's debt by three-quarters, keeping the store in business.
In a statement made by True Religion's Chief Executive, John Ermatinger, he mentioned the growth potential True Religion has and how the company will aim to grow their online store.
"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."
The company was founded in 2002. During 2007 to 2012, the company tripled in size with revenue of $490 million in 2013. Last year, they had to close 20 stores due to budget cuts in an effort to save money.
Sales started dropping in 2013 due to the increase in online shopping. True Religion is getting short changed by fast-fashion stores like H&M and Zara for their cheaper prices.
Its fiscal year ended on January 28th, and the company had lost $78.5 million on revenue totaling at $396.5 million.