Jeans Brand True Religion Filed For Bankruptcy

According to the world clothing shoes and hats net, the United States

brand

This week for bankruptcy, this is the latest South California clothing brand closed by the electricity supplier.

True Religion's private equity fund, TowerBrook Capital Partners and lender, including Goldman Sachs Group, reached a deal. The lender will fill the company's debt of $3.5 billion and get a 90% stake in the restructuring.

During the restructuring period, True Religion is still open, but it will shift its focus to online.

At the same time, it will renegotiate the lease agreement with the landlord.

"We are taking important steps to reduce debt, reactivating True Religion's iconic brand and repositioning the company's future growth and success," said True John, a CEO John Ermatinger in True Religion.

True Religion is headquartered in Manhattan beach in southern California. The company has 1900 employees and sells jeans and other costumes in 140 True Religion and Last Stitch shops.

You can see brand stores in shopping malls and small retail stores.

Last year, in order to reduce costs, the company has closed 20 stores.

True Religion, founded in 2002, was once famous for selling a series of high-end jeans.

The price of jeans on the company's website is still above $199, and the most expensive one is 319 dollars.

From 2007 to 2012, the company's revenue almost doubled 3, and the company's revenue reached 490 million dollars in 2013.

However, in 2013, True Religion "began to feel that customers shifted from traditional retailers to online shopping, and sales of companies began to decline," said True Dalibor Religion Snyder CFO Dalibor Snyder.

The trend of online shopping has not disappeared. These years have been accelerating the company's business.

Fast fashion brands such as ZARA and H&M are losing competitiveness of True Religion.

True Religion is not the only clothing brand that has been affected by this. The American Apparel, Pacific Sunwear of California, Nasty Gal and Wet Wet, which are based in southern California, have sought bankruptcy applications in the past two years.

From the whole of the United States, those brands that have long relied on shopping channels are not doing well.

Ann Taylor, Loft and other brand parent Ascena retail group plans to turn off 250 stores.

At the beginning of this year, Payless ShoeSource, a discount shoe retailer, filed for bankruptcy. The clothing brand The Limited closed 250 stores.

Of course, you can't explain your mistakes with the big trend. True Religion company has its own shortcomings.

The fashion jeans manufacturers once again did not boom, and even the company itself admitted that "new products designed could not resonate with customers," Snyder said in a statement.

As of January 28th, the company's revenue was 369 million 500 thousand, but the loss reached $78 million 500 thousand.

Ilse Metchek, chairman of California fashion trade association, told the Losangeles times that the market for high-end jeans is still there, but True Religion did not seize the opportunity.

"Their retail stores are not very exciting, nor do they make it a desirable brand in brand marketing - customers are willing to pursue this brand," even though the price is not cheap.

"You can't pile up a layer of jeans on the table, hoping it will excite your customers," Metchek said. "We must have a good look here. Is there an exciting point? Can this define your brand?"

More interesting reports, please pay attention to the world clothing shoes and hats net.