True Religion
| Company type | Private |
|---|---|
| Industry | Apparel |
| Founded | 2002 |
| Founder | Jeff Lubell, Kym Gold |
| Headquarters | Vernon, California , United States |
Area served | Worldwide |
Key people | Michael Buckley (CEO), Zihaad Wells (Creative Director) |
| Products | Denim jeans, clothing |
| Parent | TowerBrook Capital Partners (since 2013) |
| Website | www |
True Religion Brand Jeans is a U.S.-based apparel firm established in 2002 by entrepreneur Jeff Lubell and designer Kym Gold, with its main office located in Vernon, California.
Overview
The company is recognized for its high-end denim jeans and clothing, with a portion of its merchandise produced domestically. By 2009, True Religion's products were distributed through approximately 900 boutiques and specialty retailers spanning 50 countries. As of May 2021, the brand maintained 50 retail outlets across 30 nations, underscoring its extensive international presence and market impact.
History
True Religion commenced operations in 2002 using a distinctive approach, manufacturing roughly 14,000 jeans without initially creating samples or securing purchase commitments. The business model relied heavily on outsourcing production and operational tasks to third-party contractors, prioritizing operational efficiency.
The company’s flagship retail location debuted in 2005 in Manhattan Beach, California. Additionally, True Religion's merchandise is available at prominent department stores including Von Maur, Nordstrom, Bloomingdales, and Saks Fifth Avenue.
In November 2019, Michael Buckley, previously serving as president, was promoted to CEO to guide the brand’s recovery after bankruptcy declarations in 2017 and 2020. Under his direction, the company reinstated designer Zihaad Wells as creative director to enhance its product lines.
Despite facing obstacles such as store shutdowns during the retail downturn, True Religion demonstrated business improvement by 2021 with revenues surpassing $235 million, indicating a rebound in both financial health and market position.
2013 acquisition by Towerbrook
On May 10, 2013, TowerBrook Capital Partners acquired True Religion, offering shareholders a 52% premium compared to the stock price on October 9, 2012. The share value had dropped by 40% throughout 2012 due to disappointing pre-holiday sales in 2011 and apprehensions about demand for the brand’s premium-priced denim. Over the preceding three years, True Religion’s stock appreciated only 11.6%, while competitors such as VF Corporation, Ralph Lauren Corporation, and PVH Corp. more than doubled their market value. Prior to the takeover, True Religion was publicly traded on NASDAQ under the ticker TRLG.
Bankruptcies
True Religion filed for protection under Chapter 11 bankruptcy on July 5, 2017, revealing liabilities of $534.7 million against assets totaling $243.3 million. Subsequently, the company shuttered 27 U.S. stores as part of its restructuring efforts.
In April 2020, facing reduced demand for denim products, True Religion initiated a second bankruptcy filing and closed an additional 37 locations, maintaining operations at 49 stores. This second reorganization concluded in November 2020 with signs of recovery and plans to significantly increase revenue in future years.
See also
External links
- Jeans by brand
- Clothing brands of the United States
- Companies based in Los Angeles County, California
- American companies established in 2002
- Clothing companies established in 2002
- Companies based in Vernon, California
- 2013 mergers and acquisitions
- Companies that filed for Chapter 11 bankruptcy in 2017
- Companies that filed for Chapter 11 bankruptcy in 2020
- Companies of the United States by year of establishment