Once being the most popular clothing brand in the hip hop industry has now filed for chapter 11 bankruptcy.
According to Fortune.com
True Religion, a company whose denims have gradually fallen out of style, filed for creditor protection under Chapter 11 in the U.S. bankruptcy court in the District of Delaware, and listed assets and liabilities in the range of $100 million to $500 million.
The restructuring agreement with lenders, including TowerBrook Capital Partners, will slash the company’s debt by over $350 million, it said in a statement.
The denim retailer’s financial struggles are due in part to consumer tastes shifting toward online shopping and away from the brick-and-mortar shops and department stores where the company’s jeans have been primarily sold.
The company has around 140 stores. Due to them filing bankruptcy, 29 leases will be ended, out of that 29 stores, 27 are still open currently.
According to court documents, the company had $534.7 million worth of liabilities on its books, but only $243.3 million in assets.