True Religion has filed for bankruptcy for the second time in three years. The denim company says the COVID-19 pandemic has played a role in affecting their revenue.
According to Forbes, True Religion Brand Jeans filed for Chapter 11 bankruptcy on Monday and said their business has been affected the pandemic due to the long-term closure of brick-and-mortar stores throughout the country. Additionally, the bankruptcy will help its shareholders maximize the company’s value and will stay in business once stay-at-home orders are lifted.
“While the debtors would have preferred to wait-out the current instabilities of the financial markets and retail industry generally, they simply could not afford to do so,”
In 2017, True Religion Brand Jeans filed for bankruptcy after closing their stores, paying off $350 million in debt, and investing in e-commerce.