True Religion reportedly hiring lawyers for debt restructuring

US denim company True Religion Apparel Inc would have reportedly started studying different options to restructure its debt.

Sources close to the matter told to Reuters that the American denim company has hired law firm Kirkland & Ellis LLP to explore several debt restructuring options.

Consumers’ shifting tastes, the increase of online shopping and the related decline of brick-and-mortar shops and department stores were the main reasons that, according to the market, have cost True Apparel its current financial struggles.

True Religion has been consulting with Kirkland on a range of possibilities for slashing its 500 million dollars’ worth of debt. To date, the options that have transcended were a bankruptcy filing or in negotiations with the company's lenders.

Moody's said the True Religion brand had "lost some relevance" since its peak in the mid 2000s, when the jeans were seen as a status symbol.