WSJ – Jeans maker True Religion Apparel Inc. filed for bankruptcy for the second time in less than three years, saying it had no choice as government stay-at-home edicts shut down nonessential stores nationwide. The company filed for chapter 11 protection in the U.S. Bankruptcy Court in Wilmington, Del., on Monday, blaming liquidity constraints and the COVID-19 pandemic. True Religion, based in Manhattan Beach, Calif., has furloughed the bulk of its employees, according to court papers. The company said it “would have preferred to wait-out the current instabilities of the financial markets and retail industry generally,” but couldn’t afford to. The company plans to pursue either a sale or a reorganization and intends to decide between the two strategies in mid-May, according to court documents. The pandemic has forced the closure of the company’s 87 retail stores and its wholesale business, eliminating 80% of revenue and making a chapter 11 filing “unavoidable,” True Religion interim Chief Financial Officer Richard Lynch said in a sworn declaration.
What an absolute shame. To be completely honest I was not aware that True Religion had retail locations. True Religion has provided the opportunity for bums everywhere to overpay for jeans while also looking like a total asshole for 18 years. I feel like True Religion specifically sponsors the kids in high school who drop out to deal drugs full time. Their fit can be complemented by a Gucci belt that has a 20% chance of being real and a pair of Air Force 1’s. Let’s take a look at some of the brands best looks:
Absolute blasts from the past. Almost spit out my coffee when I saw Jon Gosselin from Jon & Kate Plus 8 absolutely dripping with the boot cut True Religion. With the discounts flying on the True Religion website right now, Pauly D is probably having a field day. Absolute nostalgia thinking about him fist pumping and yelling T-Shirt time with his equally as horrible graphic tees. These jeans defy any type of common sense and style. What I would like to know is what the company’s reasoning is for the price point. “Let’s just slap on a stitched horseshoe to customers’ (or lack thereof) ass cheeks and sell these suckers for $200.” Are they for rappers, trappers, or suburban wannabes of the previous two categories? No one really knows.
While the company has transitioned into this decade’s styles, the brand is a total laughing stock. Before, when they could afford to turn the lights on, they were charging $179.00 for these fucking things.
I do not want to see a company go under and people to lose their jobs, but these fucking idiots had it coming. True Religion already restructured its finances in 2017 and is again looking for protection again. Tough eat for TowerBrook Capital Partners who acquired the failing business in 2012. The company already has $140 million in debt and is looking to take on an additional $89 million to keep operations going.
The bigger picture here is how many fucking retail companies are going to face this reality. I pray to God the Gap does not follow suit. I just recently found the perfect style of pants for my frame at the Gap and I cannot afford to lose out on them. Fitting my Redwood legs into tapered pants is a harder task than trying to find people willing to wear True Religion.
Worst comes to worst, I am sure a PE firm will swoop in and take on that balance sheet to liquidate. My early guess is Paul DelVecchio Capital Management. One man’s trash is another man’s treasure and that is certainly the case here.
Stay poor people and especially TowerBrook Capital Partners
Standardly Poor 