True Religion rebounds from Chapter 11 Bankruptcy following negotiations with key stakeholders this month, after having filed for bankruptcy earlier this year.
During a rough time for retail, the company’s reorganization plan gives the California-based denim brand the ability to deleverage its balance sheet, reducing loans from $471 million down to $113.5 million after working to extend its principal debt to 2022. The company will in turn reduce debt each year, allowing for more investments and growth.
“We would like to thank our consumers, our employees, vendors and suppliers for their unwavering support and continued dedication to the True Religion brand,” said CEO John Ermatinger. “With substantial debt burden removed, we are eager to turn our full attention to implementing our forward-thinking strategy, including improving our retail operations, new partnerships and growing the brand’s digital presence.”
True Religion continues with its strategic plan, adjusting EBITDA through Sept. at $13.6 million, or +46 percent to last year. Citizens Bank is giving True Religion the exit ABL of $60 million, allowing the company to have more funds in addition to its income from operations.