True Religion merchandise (Photo by Becky Sapp/Getty Images for MediaPlacement)
Matt Wotus, Rare.us
Retail clothing chain True Religion, known for its denim jeans, has filed for creditor protection under Chapter 11 in the U.S. bankruptcy court in the District of Delaware, the company said Wednesday, listing its assets and liabilities between $100 million and $500 million.
It also signed a restructuring agreement with lenders that will cut its debt by over $350 million.
In October, Reuters reported that True Religion had hired a legal adviser to look at different options for debt restructuring. The company’s financial struggles have stemmed from a rise in online shopping as consumers move away from the shops and department stores where the retailer’s jeans are usually sold.
“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,” John Ermatinger, True Religion’s chief executive, said in a statement.
The company said it would continue to operate normally, and that its trade creditors crucial to the business were anticipating to be paid fully. The full payment of claims for its continuing trade creditors, a category encompassing continuing vendors, suppliers and landlords, is provided through the restructuring plan.
True Religion said it has also acquired post-petition debtor-in-possession (DIP) financing for up to $60 million from Citizens Bank.
It could take about 90 to 120 days to receive confirmation of the prearranged plan from the bankruptcy court, the retailer said.
The event formerly known as Home World has a new name and new location.Get totally inspired for spring as you find hundreds of ways to improve your home. Make your home the one you really want. Show open daily duringmall hours. Admission is free!
Landscaping and Outdoors
Get ready for Spring and Summer and transform your outdoor space into something that feels like you’re on vacation
Make sure to visit our demonstration stage during the entire show. There will be exciting demonstrations on how to re-purpose and design thanks to Monarch Market Affair.
Meet Barry Williams from The Brady Bunch
Join us as we welcome Me-TV superstar Barry Williams who played the iconic Greg Brady from The Brady Bunch TV Show. Meet him and get an autograph on February 10th stage side at center court in front of Macy’s.
The line will start forming when the Mall Opens, and Barry’s First appearance will be at 11 a.m.
Come prepared with your camera or cell phone for the Meet and Greet.