True Religion Sale Explored
Could True Religion be the next LA premium-denim company on the auction block?
The company, founded in 2002 by Jeff Lubell and his now ex-wife, Kym Lubell, announced on Oct. 10 that it is forming a special committee to consider offers by interested third parties.
The committee of non-management directors will explore and evaluate potential strategic alternatives available to the company, including a possible sale, in order to maximize shareholder value.
“No decision has been made to engage in a transaction or transactions, and there can be no assurance that any transaction or any other strategic alternative will occur or, if undertaken, the terms or timing thereof,” the company said in a statement.
The special committee hasn’t set a timetable for completing the strategic review, and it doesn’t intend to disclose or comment on developments regarding the review until True Religion’s board of directors decides to take action.
The company has hired Guggenheim Securities LLC as its financial adviser and Greenberg Traurig LLP as its legal counsel.
True Religion’s premium blue jeans are known for the horseshoe image stitched on the back pocket and have been a popular brand among trendsetters.The company designs, manufactures and sells its jeans to high-end department stores and specialty stores and at True Religion’s 116 stores in the United States and 23 international stores.
Another Los Angeles premium-denim company up for sale is J Brand, which in July retained investment banker Morgan Stanley to look for a suitor and/or test the waters for an initial public offering.
—Deborah Belgum
