velera How Credit Union Innovation Can Drive Gen Z Engagement May 2024 Banner

Report: Apparel Company True Religion Up for Sale

True Religion retail store

Apparel company True Religion may be up for sale.

The company’s owner, hedge fund Farmstead Capital Management, began the sales process in January, CNBC reported Thursday (Feb. 15), citing unnamed sources.

The sellers are shopping the True Religion brand around to private equity firms and publicly traded apparel companies, according to the report. The valuation they are seeking is not known.

True Religion did not immediately reply to PYMNTS’ request for comment.

This report comes at a time when True Religion is aiming to nearly double its sales by 2027 after having filed for bankruptcy protection twice.

The high-end denim brand was seen as a symbol of luxury and style in the early 2000s but filed for bankruptcy in 2017 after the hype dwindled. It secured funding at the time to help it run its business as usual.

Three years later, in 2020, it filed for bankruptcy for the second time. The brand’s presence in struggling stores like Macy’s and Neiman Marcus did not help its standing, and the store closures during the pandemic hit clothing retailers especially hard.

In 2024, True Religion is diversifying its product offerings and aiming to reach a broader market. The brand now offers activewear, varsity jackets, women’s baby tees, fleece and even a pet line.

“We are much more of a lifestyle brand,” Kristen D’Arcy, chief marketing officer at True Religion, told PYMNTS in an interview posted Jan. 10.

The brand has also benefited from a resurgence of interest in Y2K fashion that has led to a comeback of items like True Religion jeans and UGG boots.

Amid this fashion trend, True Religion garnered $260 million in sales in 2023 and has set its sights on achieving $500 million in revenue by 2027, Jim Kushner, executive vice president of North America Wholesale Sales at True Religion, told PYMNTS in an interview posted in November.

“I think now we’re really appealing to a broader base of consumers based on our current position while maintaining the same level of quality and core ideas, positioning ourselves as an elevated, more premium brand,” Kushner said. “We’ve built a strong following, and we’re committed to further expanding on that foundation.”

For all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.