Bankruptcy for True Religion as consumers pivot from $300 ripped jeans

|By:, SA News Editor

True Religion plans to close about 30% of its stores as it works through the bankruptcy process. The company's sales were hit hard by the popularity of yoga pants and leggings, as well as lower-priced jeans from brands such as H&M.

"Competition has also increased from emerging and established fast fashion and low-priced apparel retailers," reads the True Religion bankruptcy filing.

The focus on fast-fashion capabilities has allowed e-commerce sellers to pivot quickly to take advantage of consumer whims, while mall stores work through inventory.

"Why would you spend $300 on ripped jeans, especially if you can get the same thing for $60?" asks Retail Systems Research managing partner Paula Rosenblum.

True Religion joins Forever 21, American Apparel, Wet Seal and Pacific Sunwear on the list of mall retailers ravaged by a drop in traffic and sales from younger consumers.

Towerbrook Capital acquired True Religion in 2013 for $850M.

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