Before recent “crimes against jeans” in which companies are charged hundreds of dollars for “window” jeans, clear jeans, and painted on mud jeans, people would spend the same amount of money on a relatively simple, if not bedazzled, pair of high-end jeans. But with changing fashion and tastes, these denim-focused retailers of yesteryear aren’t faring so well. Case in point: One-time denim darling True Religion has filed for bankruptcy.
California-based True Religion filed for Chapter 11 bankruptcy protection [PDF] earlier today, laying out its plan to restructure its debts and increase its focus on online shopping.
The company notes that it plans to “reinvigorate” the brand and “position the company for future growth and success.” This apparently means focusing on customers’ desire to shop online instead of in store, as the company plans to increase its online presence, The Wall Street Journal reports.
The retailer, which sells its denim and other clothing at department stores and hundreds of True Religion boutiques around the world, says it made the decision to file as a way to reduce its liabilities, listed at $500 million.
Under the restructuring program, that debt would be reduced to $100 million, the same as the company’s listed assets, Reuters notes.
Additionally, True Religion says it will provide full payment of claims to trade creditors.
The retailer says that it will operate under a “business as usual” stance during the restructuring process, as all stores will remain open.
Consumerist has reached out to True Religion for additional details on its restructuring and stores. We’ll update this post when we hear back.
by Ashlee Kieler via Consumerist