True Religion files for Chapter 11 amid economic struggle

True Religion filed for Chapter 11 bankruptcy protection in a Delaware court this week. The denim brand attributed its financial struggle to store closures caused by the pandemic, on top of existing liquidity constraints.

This is the second time in less than three years that True Religion has filed for Chapter 11.

True Religion has also furloughed all nonessential employees. In its bankruptcy filings, the LA-based company said it has just over 1,000 employees, 92 percent of which are now furloughed. It has between 100 and 500 million dollars in liabilities.

The brand's CEO Michael Buckley said in a statement that it will continue to run its e-commerce business just as it has been, until stores can re-open.