Upmarket US denim brand True Religion has emerged from Chapter 11 bankruptcy, under a plan of reorganisation it says paves the way for its growth plans.
“Although we had to make the very difficult decision to lower our overall store count and employee base, our successful emergence from bankruptcy as a stronger company is a testament to the contribution of all of our employees throughout the brand’s history. The reorganisation has allowed the company to reduce its operating costs and lower its debt load, and emerge a profitable, lean operating company with a healthy balance sheet,” says CEO Michael Buckley.
True Religion filed for bankruptcy for the second time in three years in April.
Buckley, the company’s former president, returned to True Religion in November last year with the job of developing and implementing the group’s future vision and roadmap.
“We are grateful for the tremendous support and collaboration from Simon Property, Farmstead Capital Management, and Crystal Financial, among others, without whose partnership and belief in True Religion’s prospects we would not be embarking on this next chapter in the company’s journey,” he added.
True Religion previously emerged from Chapter 11 bankruptcy in October 2017 following negotiations with its key stakeholders, under a plan of reorganisation.