True Religion Jean Company Files for Bankruptcy

The company famous for turning a $20 pair of jeans into $200, is having a hard time bringing in the denim dough. High-priced jean company, True Religion filed for a Chapter 11 bankruptcy protection Wednesday and it appears that not even all the tithes in the offering plate can save this business. What was once one of the hottest and most discussed brands is now doing everything it can to stay in business. The retailer has been hanging on by a thread since 2013, when sales first began declining.

True Religion’s chief financial officer, Dalibor Snyder, says that consumers migrated toward online shopping, and the company didn’t adjust to the trend. But what about those prices? Online, True Religion jeans will still run you $199 for an average pair and as high as $319. With competing retailers such as H&M, Zara, Forever21, and more providing similar clothing for much cheaper, it’s clear to see where consumers took their money..

Records show that True Religion had $534.7 million in liabilities and only $243.3 million in assets. The California based company plans to close 27 of its 140 stores in addition to the 20 stores they closed in 2016 in hopes to reduce debt by $350 million and revive the company’s brand. With any luck, it’s not too late for the company to make a comeback. CEO, John Ermatinger, expects that True Religion will be back on its feet again soon with the help of a bank and of course, some prayer.

~ Timia Whitsey