True Religion latest retailer to seek bankruptcy protection

Posted at 1:35 PM, Jul 05, 2017
and last updated 2017-07-05 13:35:18-04

LOS ANGELES (AP) -- True Religion Brand Jeans filed for bankruptcy protection Wednesday, the latest retailer upended as Americans ramp up spending, but largely in places other than clothing stores. The jeans company is seeking Chapter 11 and operations will continue uninterrupted as it restructures.

Clothing stores that operate largely out of malls have been struck particularly hard. The owner of brands including Ann Taylor, Loft, Lane Bryant, Dress Barn and Justice has said it plans to close at least 250 stores. Earlier this year, Payless ShoeSource filed for bankruptcy protection and The Limited closed all 250 of its remaining stores.

The Los Angeles company, which is owned by TowerBrook Capital Partners, said Wednesday that its reorganization will trim its debt by more than $350 million. The company also said it secured up to $60 million in financing from Citizens Bank.

True Religion filed expects its request to be approved by the court in three to four months.

The company, founded in 2002, designs, markets, distributes and sells clothing and apparel.