True Religion emerges from Chapter 11 bankruptcy

True Religion announced this week that it has successfully emerged from Chapter 11 bankruptcy, following a court-approval of its reorganization plan. The plan significantly reduces the company's debt while providing liquidity to execute plans for growth.

The denim brand had filed for Chapter 11 in April of this year, as the economic stress of the coronavirus pandemic affected the retail industry.

True Religion cites its emergence from bankruptcy to its loyal consumer base, dedicated employees and assistance from lenders and vendor partners, such as Simon Property Group, Farmstead Capital Management and Crystal Financial.

“We thank our new management team and all the company’s employees for their dedicated support in turning this business around," said Michael Buckety, chief executive officer of True Religion, in a press release. "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 reorganization 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.”