Denim brand True Religion has filed for bankruptcy.
According to reports, the Southern California-based filed for Chapter 11 bankruptcy protection, and reached a proposed deal with lenders to slash their debt by 75% as it continues operations.
As part of the bankruptcy plan, True Religion also plans to close at least 27 stores and cancel 29 leases, after closing 20 stores last year to cut costs. In all, True Religion has around 140 stores.
Founded in 2002, True Religion became a huge hit between 2007-12 as customers flocked to their pricey designer jeans line. It tripled in size, with revenues of $490 million in 2013, before it was acquired that same year for $835 million.
Despite its popularity, True Religion failed to adapt to the shift to online sales, as well as the decline of trendy denim and the rise of athleisure wear.