August 19, 2017 3:57 AM ET

Textiles, Apparel and Luxury Goods

Company Overview of True Religion Apparel, Inc.

Company Overview

True Religion Apparel, Inc. designs, markets, sells, and distributes apparel under the True Religion Brand Jeans name worldwide. It operates through U.S. Consumer Direct, U.S. Wholesale, and International segments. The company offers denim jeans and related sportswear apparel for men, women, and kids. Its sportswear apparel includes corduroy pants and jackets; cotton, twill, linen, and velvet pants and jackets; fleece sweat suits and hooded sweatshirts; sweaters; skirts; knit shirts; T-shirts; and shorts. True Religion Apparel, Inc. also licenses its trademarks to third parties for the manufacture and sale of various products. In addition, the company operates full-price retail stores, outle...

2263 East Vernon Avenue

Vernon, CA 90058

United States

Founded in 2002

3,086 Employees

Phone:

323-266-3072

Fax:

323-266-8060

Key Executives for True Religion Apparel, Inc.

Chief Executive Officer
Chief Financial Officer and Chief Operating Officer
Age: 54
Senior Vice President of Operations
Age: 54
Chief Merchandising Officer
Age: 61
Senior Vice President of Merchandising
Compensation as of Fiscal Year 2017.

True Religion Apparel, Inc. Key Developments

True Religion Apparel, Inc. Plans to Close 27 Stores

True Religion Apparel, Inc. announced that it plans to close at least 27 of its approximately 140 stores, due to seeking a revival through Chapter 11 bankruptcy protection, having fallen to its knees amid the retail sector's crisis and the rise of athleisure wear.

Interim DIP Financing Approved for True Religion Apparel, Inc.

The US Bankruptcy Court gave an order to True Religion Apparel, Inc. to obtain DIP financing on an interim basis on July 6, 2017. As per the order, the debtor has been authorized to obtain a revolving credit facility in the amount of $35 million out of a total facility of $60 million which will include a $20 million sublimit for the issuance of letters of credit from Citizens Bank N.A. with Citizens Bank N.A also acting as the administrative agent. The DIP loan would either carry an interest rate of LIBOR plus 2.5% p.a., or an alternate base rate plus 1.5% p.a., along with an additional 2% p.a. interest in the event of default. As per the terms of the DIP agreement, the loan carries Unused Line fee of 0.25% p.a. The DIP facility would mature either on December 1, 2017 or on the effective date of the plan or on the date of consummation of the sale of substantially all assets, whichever is earlier. Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out of $0.5 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor’s collateral. Final hearing is scheduled for August 1, 2017. Matthew F. Furlong of Morgan, Lewis & Bockius LLP acted as legal counsel for Citizens Bank, N.A. Richard Pachulski of Pachulski Stang Ziehl &Jones LLP acted as legal counsel for the debtor.

Reorganization Plan and Disclosure Statement Filed by True Religion Apparel, Inc.

True Religion Apparel, Inc. filed a plan with related disclosure statement in the US Bankruptcy Court on July 5, 2017. As per the plan filed, administrative expense claim, professional fee claims and priority tax claims shall be paid in full in cash. DIP Facility Claims shall be paid in full in cash. Non-Tax Priority Claims in the amount of $2 million will receive in full satisfaction, Cash equal to the amount of such Allowed Class. Miscellaneous Secured Claims in the amount of $1 million will receive in full satisfaction, Cash equal to the amount of such Allowed Class. Prepetition First Lien Claims $392 million will receive, in full satisfaction, settlement, discharge and release of, and in exchange for, such Allowed Prepetition First Lien Claim, its Pro Rata share of Reorganized First Lien Term Loans in the aggregate principal amount of $110 million under the Reorganized First Lien Term Loan Facility; and if each of Class 3, Class 5 and Class 6 vote to accept the Plan, the number of Exchange Common Shares equal to 90.0% of the maximum number of Exchange Common Shares distributable under the Plan (prior to taking into account any exercise of the Class 5 Equity Cash Out Option) or if either of Class 5 or Class 6 votes to reject the Plan, the number of Exchange Common Shares equal to 94.5% of the Exchange Common Shares. To the extent any Holder of an Allowed General Unsecured Claim exercises the Class 5 Equity Cash out Option, the percentage of New Common Shares received by Holders of Allowed Class 3 and Class 6 Claims will automatically adjust on a Pro Rata basis to reflect such exercise without the need to issue any additional New Common Shares. Continuing Operations claims in the amount of $5 million will receive in full satisfaction, Cash or such other consideration due under the applicable Allowed Class 4 Claim equal to the amount of such Allowed Class 4 Claim. General Unsecured claims in the amount of $104.7 million will receive, in full satisfaction its Pro Rata share of the Class 5 Default Consideration, consisting of Reorganized First Lien Term Loans in the aggregate principal amount of $2.5 million under the Reorganized First Lien Term Loan Facility; the number of Exchange Common Shares equal to 5.5% of the maximum number of Exchange Common Shares distributable under the Plan; and Class A Warrants. In addition and only if Class 5 votes to accept the Plan, each Holder of an Allowed General Unsecured Claim also will receive, in full satisfaction, settlement, discharge and release of, and in exchange for, such Allowed General Unsecured Claim, its Pro Rata share of the Class 5 Consensual Plan Consideration, consisting of $1.0 million in Cash; additional Reorganized First Lien Term Loans in the aggregate principal amount of $2.0 million under the Reorganized First Lien Term Loan Facility; provided, however, if any Holder of an Allowed General Unsecured Claim is a Class 5 Electing Holder, such Holder will receive the Class 5 Warrants for Debt Treatment with respect to its Class 5 Swapped Debt; and the Class 5 Equity Cash Out Option, which, as more fully set forth in the Plan definition thereof, is an option permitting each Holder of an Allowed General Unsecured Claim to elect to receive, in lieu of the Exchange Common Shares afforded it as part of the Class 5 Default Consideration, a share of $1.05 million in Cash. On the Effective Date, and solely to the extent that each of Class 3, Class 5 and Class 6 vote to accept the Plan, each Holder of an Equity Interest in Holdings will receive, in full satisfaction, settlement, discharge and release of, and in exchange for, such Equity Interest in Holdings, its Pro Rata share of the number of Exchange Common Shares equal to 4.5% of the maximum number of Exchange Common Shares distributable under the Plan (prior to taking into account any exercise of the Class 5 Equity Cash Out Option) (to the extent any Holder of an Allowed General Unsecured Claim exercises the Class 5 Equity Cash Out Option, the percentage of New Common Shares received by Holders of Allowed Class 3 and Class 6 Claims will automatically adjust on a Pro Rata basis to reflect such exercise without the need to issue any additional New Common Shares); Class B Warrants; and Class C Warrants. If any of Class 3, Class 5 or Class 6 votes to reject the Plan, Holders of Equity Interests in Holdings shall receive no recovery, and the above-referenced 4.5% of the Exchange Common Shares, shall be distributed Pro Rata to the Holders of Class 3 Prepetition First Lien Claims, as set forth in the Plan and the Class B Warrants and Class C Warrants shall not be issued. Each Allowed Intercompany Interest shall be reinstated for purposes of the Subsidiary Structure Maintenance. The plan will be funded through issuance of new equity, warrants, exit facility of $60 million and First Lien Term Loan Facility of $114.5 million.

Similar Private Companies By Industry

Company Name Region
'47 Brand, Inc. United States
1 Atelier LLC United States
11 Pine, Inc. United States
110% Play Harder United States
12ve Degrees Corporation United States

Recent Private Companies Transactions

Type
Date
Target
Bankruptcy
July 5, 2017
--
\
 

The information and data displayed in this profile are created and managed by S&P Global Market Intelligence, a division of S&P Global. Bloomberg.com does not create or control the content. For inquiries, please contact S&P Global Market Intelligence directly by clicking here.

Stock Quotes

Market data is delayed at least 15 minutes.

Company Lookup

Most Searched Private Companies

Company Name Geographic Region
Lawyers Committee for Civil Rights Under Law United States
NYC2012, Inc. United States
The Advertising Council, Inc. United States
Bertelsmann AG Europe
Rush University United States

Sponsored Financial Commentaries

Sponsored Links

Request Profile Update

Only a company representative may request an update for the company profile. Documentation will be required.

To contact True Religion Apparel, Inc., please visit --. Company data is provided by S&P Global Market Intelligence. Please use this form to report any data issues.

Please enter your information in the following field(s):
Update Needed*

All data changes require verification from public sources. Please include the correct value or values and a source where we can verify.

Your requested update has been submitted

Our data partners will research the update request and update the information on this page if necessary. Research and follow-up could take several weeks. If you have questions, you can contact them at bwwebmaster@businessweek.com.