Denim apparel retailer True Religion has filed for bankruptcy for the second time within three years.
The brand’s latest crisis was brought on by the coronavirus outbreak, which has seen more than 95 percent of the American market under lockdown. In a statement, True Religion said it had found itself unable to wait out the pause in trading.
The firm’s foremost lenders ABL and Term Loan are investing in the brand’s reorganization efforts under Chapter 11 bankruptcy proceedings, according to CEO Michael Buckley. The firm registered US$100 million in assets against $500 million in liabilities in its court filing this week.
The firm emerged with a streamlined store network and a stronger financial position after its last bankruptcy, which had the support of lenders and came with an exit strategy pre-mapped out.
“In the near term, and until our stores open up, we will be continuing as we have,” said Buckley, “to run our e-commerce businesses in the same way we did prior to filing for Chapter 11”.