Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

True Religion’s UK brand director bullish despite US bankruptcy

True Religion has asserted that its UK business will remain unaffected by its chapter 11 bankruptcy proceedings in the US.

The company filed for creditor protection under chapter 11 earlier this week, in the US bankruptcy court in the District of Delaware.

However, UK brand director Matt Claydon told Drapers that business will continue to operate as normal.

Claydon said: “This type of bankruptcy was necessary to put the brand in a strong position moving forward and only affects the US business. The upside to this is that we can get back to focusing on innovative product and growing the business in the right direction.

“We continue to perform well in all categories including sportswear, jersey, tees, denim and accessories.”

He added that any store closures would be based in the US, and that True Religion in the UK has recently agreed new leases at sites at both Westfield White City and Stratford.

The retailer also operates a flagship on Carnaby Street.

Claydon said the menswear business is in a “very healthy position” and reports “huge” year-on-year growth.

It is stocked at around 130 retailers including Selfridges, Harrods and Harvey Nichols.

He added that although womenswear continues to be tough, he expects “big things” from its kidswear business, which works with 20 accounts including Selfridges.

True Religion’s restructuring agreement in the US with lenders, including its private equity owner TowerBrook Capital Partners, is expected to reduce the company’s debt by more than $350m (£271m).

The retailer has secured post-petition debtor-in-possession financing – a form of financing for companies in financial distress – from Citizens Bank for up to $60m (£46m).

Confirmation from the bankruptcy court is expected to take around 90 to 120 days.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.