Advertisement

Citing COVID-19 Sales Impact, True Religion Again Files For Bankruptcy

True Religion has filed for its second Chapter 11 bankruptcy in three years, becoming the first major retail victim of the coronavirus pandemic, according to Forbes. The company said that store closures related to the COVID-19 pandemic hurt its business, which “accelerated” liquidity constraints the retailer already faced.

True Religion has already furloughed all non-essential employees and the company sees bankruptcy proceedings as the only way to stay in business once non-essential retailers can reopen. The company listed assets and liabilities of as much as $500 million each in its petition.

“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,” said True Religion in court documents.

The retailer shed more than $350 million in debt during its 2017 bankruptcy proceedings, which also led to closing stores and investing in e-Commerce operations. True Religion has since worked to modernize its offerings, including by hiring former company President Michael Buckley as CEO and naming Zihaad Wells as Creative Director during the final months of 2019.

Advertisement

Featured Event

View the Retail Trendcaster Webinar Series on-demand to uncover key 2025 retail trends, from AI and personalization to social commerce. Gain expert insights, data-driven predictions, and actionable takeaways to stay ahead in a rapidly evolving market.

Advertisement

Advertisement

Retail Trendcaster Webinar Series
Days
Hours
Minutes
Seconds

Uncovering What’s Next in Retail

On-Demand Limited Video Series

Q1 is a pivotal time for retail, with experts analyzing holiday sales and forecasting trends. View the full lineup of the Retail Trendcaster video series for insights on consumer spending, AI, personalization, social commerce, and more—helping you focus on what truly matters in 2025.

Brought to you by
Retail TouchPoints
Access Now
Retail TouchPoints is a brand of Emerald X LLC. By clicking the button and submitting information, you acknowledge and agree that your information may be shared with corporate affiliates of Emerald X LLC, and other organizations such as event hosts, speakers, sponsors, and partners. Please read our Privacy Policy and our Terms Of Use for more information on our policies.

Access The Media Kit

Interests:

Access Our Editorial Calendar




If you are downloading this on behalf of a client, please provide the company name and website information below: