True Religion Files For Bankruptcy As Amazon Claims Another

Tyler Durden's picture

Nearly one year after rumors about its upcoming bankruptcy first emerged, overnight US-based denim retailer True Religion Apparel finally threw in the towel when it filed for bankruptcy protection, signing a pre-packaged restructuring agreement with most of its lenders.

True Religion, a company whose denims Reuters says have "gradually fallen out of style", filed for Chapter 11 creditor protection in the U.S. bankruptcy court in the District of Delaware (case Case 17-11463), and listed assets and liabilities in the range of $100 million to $500 million (see full filing below). According to the prepack agreement agreed upon by lenders, including TowerBrook Capital Partners, will slash the company's debt by over $350 million. The jean vendor also said it has secured DIP financing from Citizens Bank for up to $60 million.

True Religion Brand Jeans is pleased to announce it has secured critical stakeholder support for a comprehensive financial recapitalization of the Company’s capital structure. In signing a Restructuring Support Agreement (“RSA”) with the substantial majority of its Term Loan Lenders and its Sponsor, TowerBrook Capital Partners, the Company will reduce its debt by over $350 million and convert it into the substantial majority of the reorganized Company’s equity. To implement the terms of the pre-arranged restructuring expeditiously, the Company filed a voluntary Chapter 11 petition in the United States Bankruptcy Court for the District of Delaware, and expects it will take 90 to 120 days to obtain confirmation of its pre-arranged plan by the Bankruptcy Court. Throughout the implementation of this process, True Religion will continue to operate its business without interruption to customers, employees and business partners.

"After a careful review, we are taking an important step to reduce our debt, reinvigorate True Religion's iconic brand and position the company for future growth and success," True Religion Chief Executive John Ermatinger said in a statement. True Religion also said that critical trade creditors are expected to be paid in full and the company would continue to operate business as usual. The restructuring plan provides for full payment of claims of True Religion's continuing trade creditors, which includes continuing vendors, suppliers and landlords.

The company listed Wachtell Lipton and Pachulski Stang as legal advisors, while financial advisor is MAEVA Group.

For those seeking a culprit for the latest bricks-and-mortar bankruptcy, look no further than Amazon. The denim retailer's financial struggles are due in part to consumer tastes shifting toward online shopping and away from the brick-and-mortar shops and department stores where the company's jeans have been primarily sold.

True Religion said the pre-arranged plan could take about 90 to 120 days to receive confirmation from the bankruptcy court.

* * *

Last October, Reuters reported in October that the retailer had hired a legal adviser to explore several debt restructuring options, as such today's filing should come as no surprise.

Finally, with the True Religion bankruptcy filing, here is the full revised Moody's list of which deeply distressed retailer will likely file for bankruptcy next.

  • True Religion Apparel - men's and women's clothing
  • Boardriders SA  - sporting subsidiary of Quiksilver
  • The Bon-Ton Stores - parent of department store chain
  • Fairway Group Holdings - food retailer
  • Tops Holding II - supermarket operator
  • 99 Cents Only Stores - discount retailer
  • TOMS Shoes - footwear company
  • David's Bridal - wedding dresses and formalwear seller
  • Evergreen AcqCo 1 LP - parent of thrift chain Savers
  • Charming Charlie - women's jewelry and accessories
  • Vince LLC - clothing retailer
  • Calceus Acquisition - owner of Cole Haan footwear firm
  • Charlotte Russe - women's clothing
  • Neiman Marcus Group - luxury department store
  • Sears Holdings - owner of Sears and Kmart.
  • Indra Holdings - holding company owner of Totes Isotoner
  • Velocity Pooling Vehicle - does business as MAG, Motorsport Aftermarket Group
  • Chinos Intermediate Holdings - parent of J. Crew Group
  • Everest Holdings - manages Eddie Bauer brand
  • Nine West Holdings - clothing, shoes and accessories
  • Claire's Stores - accessories and jewelry
  • Gymboree - children's apparel

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HenryKissingerBilderberg's picture

what's with the latin ass picture?

American Psycho's picture

It's a pic of the jeans this company sells.  Although I only really noticed the ass. 

Osmium's picture

Whatcha gunna do with all that ass.  All that ass inside dem jeans.

ramon_espino's picture

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.jobproplan.com

Laowei Gweilo's picture

 

...What in the world does AMAZON have to do with True Religion jeans lol

since when are they brick and mortar... WTF

 

True Religion's fall is because of OTHER jean brands' rise in fashion popularity

 

Amazon have had ZERO impact on something like TR jeans. stupidest thing I've seen on ZH in a while.

Dubaibanker's picture

Hahaha

Meanwhile, Daniel Leather has resurrected from the dead!

Danier launches Canada wide expansion!

http://www.retail-insider.com/retail-insider/2017/7/danier

Canadian Dirtlump's picture

Danier... There's a name I used to see while trolling packed malls as a rubenesque dirtlump. As for TR, they have an outlet at Cross Iron Mills outside of Calgary. I have been considering getting a couple of pairs for old time's sake ( provided I can get a pair that aren't skinny jean baby dick pussy fart panzy ass cut). I guess this means they may be less overpriced when I get around to it.

Handful of Dust's picture

Broke middle class consumer is the Big reason.

Amazn plays a role but consumers have no money and credit it much tighter now.

Malls in china are packed crazy even though they have lots of online sales too.

 

In America, malls are dead empty:

1) broke back consumer;

2) out of control mall and parking lot crime;

3) online competition.

 

Canadian Dirtlump's picture

It's somewhat remarkable that the malls in my area are still pretty busy. Granted alot of it appears to be tourist dollars or new canadians with free money dollars.

Regarding Amazon though - I've only ever used it a handful of times because Bezos has AIDS as well as the whole retail killing factor. Don't get me wrong, I won't make a difference and we're all fucked at some point. I'll have nice jeans to shit myself in though when it all goes bad.

Antifaschistische's picture

completely agree...

and don't tell me True Religion wasn't the target of Wall Street/True Religion Insider pump-and-dump schemes for VIPs to make their 100 million dollars off of the back of the ignorant retail investors.    Then...oh, look, an amazon casualty.   bull shit.   easy money from the fed...lost of shiny expansion for the pump.  VIPs making hundreds of millions...etc...

THATs the story here.   and I GUARANTEE you the True Religion insiders who got rich off the stock sales....are STILL rich off those stock sales....and the Bankruptcy was baked into the program from day one.....just line them up, because it's the same Wall Street plan for a couple hundred others......and just wait until this game hits the technology sector.

IntTheLight's picture

True religion expensive for their demographics. That's the problem. They sell trendy clothes and not just jeans. Americans are broke.

Handful of Dust's picture

I guess peeples aren't as religious as they used tobe....

 

/s/

Lucretius's picture

Kind of a stretch to blame all ills on the interwebthingy! How about poor senior management? Could not the overpaid "fat cats" have any responsibility in the fate of the said corp?

Lazy writing to pick one off the list and solely blame the interwebthingy, just to boast "See, I was right!".

I smell bullshit!

Laowei Gweilo's picture

More than anything, it's just that TR isn't cool lol

True Religion is like the Ed Hardy t shirt of jeans

 

 

DosZap's picture

IS THERE any REASON WE SOULD GIVE A SHIT?.

NOW MAKE DAT 7 LARGE AND KEEP IT TO YOURSELF OR GO TELLS THE BLACK FOLS IN CHICAGO, AND BALITIMORE,MAYBE THEY WOULD STOP MURDERING EACH OTHER.

GunnerySgtHartman's picture

Gotta say, that's a nice ass.

Miffed Microbiologist's picture

This must be the problem with that business. They needed to retool their jeans to the 3x-6x crowd and remove anything resembling religion from their brand.

As an aside I saw an ad for 6x leather jeans once. How many cattle died for that seems tragic. For someone who would look like a couch.

Miffed

Handful of Dust's picture

"Skinny" jeans don't sell too well in America. Maybe they can ship them back to China and sell them to the tiny Hmong people.

Lucretius's picture

+100

made me chuckle. Oh the bovinity!!! ;-0)

Secret Weapon's picture

If you can ever get it to shut up and stop talking, then maybe. 

besnook's picture

latin girls sure do know how to properly orgasm.

HenryKissingerBilderberg's picture

Sofia Vergara...

45 years old... http://www.studiof.com.co/denim

let that sink in.

HenryKissingerBilderberg's picture

there is also that bubble-up nordic/swedish/russian victorias secret/ ice queen ass...

HRClinton's picture

Speaking of getting them to shut up... nordic, swedish, victorias secret. Good luck with that.

But I've heard that they're the most quiet during sex.

;-)

 

HenryKissingerBilderberg's picture

Speaking of getting them to shut up... nordic, swedish, victorias secret. Good luck with that.
But I've heard that they're the most quiet during sex.

sorry but that is "russian victorias secret"

Lucretius's picture

Where is that Big Ugly Bubble when needed as an example? Seems to be mia...

Cloud9.5's picture

So sweet in the beginning but it usually has a short shelf life due to caloric intake.  I can say this because I am Latin.

yomutti2's picture

On this site, I'm pretty sure that ethnic criticism doens't require membership in the target ethnicity.

 

But yeah, with the Latin girls, there is typically a short window between jailbait and whalebait. Maybe Trump should handle the Mexican border question with a hottie visa. You can come in at 18, but you have to go back at 28. Females only.

 

cheech_wizard's picture

Upvoted for whalebait... sad, but true.

 

besnook's picture

don't tell me you'd prefer a flat white ass.

peippe's picture

what's with it is i tried to click & expand it 

& all it did was take me to this stupid article. stoopid internet. : (

gmak's picture

Why don't you ever provide the tickers with the names?

Silver Savior's picture

Thanks for the morning ass pic. But it just does not look right. I'll pass. It's kind of square looking. 

besnook's picture

jesus! you're picky. that's a doable ass all life long.

Dutch1206's picture

You'd be a fool to pass on that

freddymercury's picture

I prefer Old Navy jeans

besnook's picture

i prefer old levis but i'll take that ass in a pair of torn baggy shorts.

Too-Big-to-Bail's picture

Yeah well I'm making over $8k a month, motherf*cker

ABG LINE's picture

Click bait article. No ass pics .

Wahooo's picture

Lot of consumer brands - and retailers for that matter - don't have online strategies that work. Days are numbered. Others, like Nike, are shifting from brick and mortar to online sales. It's the biggest success factor for this group. We can convert shopping malls to marijuana grow facilities or paintball courses.

Anteater's picture

Convert them to senior centers. The store fronts would fill up with doctors, dentists and Olive Gardens. Even have it's own SSA and Medicare office, and maybe a Pentagon recruiting station to snag bored teenagers visiting Gramma or Granpa.

It would be YUUUGE!

FoggyWorld's picture

That is already happening where I live as more and more doctors and walk in clinics are taking over empty malls and I recall reading about recruiting stations now being put in malls to lure kids in.

HenryKissingerBilderberg's picture

Lot of consumer brands - and retailers for that matter - don't have online strategies that work. Days are numbered. Others, like Nike, are shifting from brick and mortar to online sales. It's the biggest success factor for this group. We can convert shopping malls to marijuana grow facilities or paintball courses.

the rapefugees welfare money seems to be spent on brand new red nike shoes here in EUrope...