True Religion files for bankruptcy, closing 27 stores
Los Angeles — True Religion Brand Jeans is filing for Chapter 11 bankruptcy protection, the company said. The apparel maker and retailer said it would continue to operate its business. But at least 27 stores will close, USA Today reported, citing a court filing.
The maker of stylized jeans and apparel is the latest retailer this year to file for Chapter 11, close stores or go out of business entirely.
The Limited Brands, BCBG Max Azria, Payless Shoes, teen retailer Rue21 and women's clothing label Bebe have all announced bankruptcy or liquidation. Ascena, which owns Lane Bryant, Anne Taylor and Loft, said it would have to trim its store count if it can't get reduced rent. A sizable portion of these companies are owned by private equity firms.
True Religion, which is based in Los Angeles and owned by TowerBrook Capital Partners, said Wednesday the reorganization will reduce its debt by more than $350 million. The company also said it secured up to $60 million in financing from Citizens Bank.
True Religion filed a voluntary Chapter 11 petition in Delaware and expects it will take between three and four months to be confirmed by the court.
The company, founded in 2002, designs, markets, distributes and sells clothing and apparel.
These are the 27 stores that are slated to close, according to USA Today:
California
Corte Madera: The Village at Corte Madera
Malibu: 3838 Cross Creek Road
Walnut Creek: Broadway Plaza
Newport Beach: Fashion Island Shopping Center
Colorado
Lone Tree: Park Meadows
Florida
Miami Beach: 644 Collins Avenue
Palm Beach Gardens: The Gardens
Boca Raton: Town Center at Boca Raton
Illinois
Chicago: The Shops at North Bridge
Maryland
Bethesda: Montgomery Mall
Massachusetts
Boston: 119 Newbury Street
Nevada
Las Vegas: Downtown Summerlin
New Jersey
Paramus: Garden State Plaza
New York
New York City: 1122 Third Avenue, 513-515 Broadway, 863 Broadway, The Shops at Columbus Circle, 863 Broadway
White Plains: The Westchester
Ohio
Cincinnati: Kenwood Towne Centre
Pennsylvania
Philadelphia: 1604 Walnut Street
Texas
Dallas: Northpark Center
San Antonio: The Shops at La Cantera
Southlake: Southlake Town Square
Virginia
Richmond: Short Pump Town Center
McLean: Tysons Corner Center
Washington
Bellevue: Bellevue Square