Yet another major brand has succumb to bankruptcy! The denim and clothing company has been weighed down by debt and needs reconfigure before mounting a come back. In order to do this they have filed for a pre-pack Chapter 11 petition. With this maneuver control of True Religion will be passed on to their creditors.
Financiers of True Religion like TowerBrook Capital Partners, the New York private equity firm that owns the denim company will be cutting their debt by around seventy-five percent. True Religion plans to stay in this creditor control state for around two to three months while they reorganize the brand. After this period they plan to emerge ready to turn profits and and advance as a brand.