Designer jeans company True Religion has filed for Chapter 11 bankruptcy protection for the second time in three years, citing difficulties due to the coronavirus pandemic.
In a court filing, the denim retailer said it would have preferred to wait out the current period of lockdowns and instability in financial markets but “simply could not afford to do so”.
True Religion listed US$ 100 million to US$ 500 million in assets and liabilities in the court filing dated April 13.
The company said that bankruptcy was the only way to maximize value for shareholders and stay in business once stay-at-home orders are lifted and non-essential retailers can reopen. The company had already furloughed all non-essential employees, according to court documents.
“In the near term, and until our stores open up, we will be continuing as we have, to run our e-commerce businesses, in the same way we did prior to filing for Chapter 11,” Michael Buckley, Chief Executive Officer, True Religion was quoted by Reuters as saying.
True Religion, which was founded in 2002, rode the wave of popularity of denim, but has struggled in recent years amid the rise of athleisure and increasing competition from the jeans rivals. True Religion emerged from bankruptcy the first time around after less than four months.
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