Once a household brand name, premium denim designer True Religion Apparel Inc. has filed bankruptcy under the protection of Chapter 11 for the second time in three years. While the company initially managed to exit bankruptcy after only four months in 2017, True Religion attributes their current difficulties to the coronavirus pandemic begging the question; will they recover?
The designer jean company announced plans to close at least 27 stores and requested judicial permission to forfeit a total of 29 leases, leaving them around 140 stores across the united states. Once more decided to double down on online commerce as they had in 2017, the company concluded bankruptcy would maximize value for shareholders and allow them to remain in business until stay-at-home orders were re-established and non-essential businesses were given the green-light to reopen.
Company CEO Michael Buckley ensures that the retailer will continue running its online business despite bankruptcy, hoping to reopen post-pandemic after reorganizing through financial support garnered among its largest lenders.
True Religion is among multiple businesses which have been hurt by the COVID-19 induced closure of brick-and-mortar businesses across the continent, hurt especially bad by their failure to transition into online sales. Among their ranks lie similar teen retailers such as American Apparel, Aeropostale and Pacific Sunwear whom have fallen out of favour in recent years, due to rising interest in lower-cost brands and athletic sportswear.