True Religion Files for Bankruptcy, Abercrombie Pulls Itself Off Market

Whew, it is rough out there, guys. According to Fortune, True Religion filed for Chapter 11 bankruptcy protection, making it “the 23rd retailer or consumer-oriented company to do so this calendar year,” and according to USA Today, Abercrombie has dropped its search for a buyer, driving its “stock down 14.5%”.

2017 has been a noteworthy year for literally all the wrong reasons when it comes to the retail sector (see yesterday’s post on the RetailDive report that profiled 10 big names with C-grade bond ratings — a list which included J. Crew, Neiman Marcus and Eddie Bauer, among others – for more on that), and mall brands like True Religion and Abercrombie have been hit with particular ferocity.

Not even Russel Westbrook’s guest spot as True Religion’s creative director / campaign face could turn things around, smh.

True Religion’s restructuring deal “will allow [the company] to keep stores open even as it focuses on building up its e-commerce,” according to the Fortune story, while Abercrombie is essentially trying a little bit of everything at their namesake stores as they cling to the coattails of incremental quarterly gains made by Hollister.

And, as Fortune said, “the bloodbath won’t end soon: this winter, a report by Moody’s Investors Service found that debt maturities were on their way to record levels in the next five years.”

You can read more about it at Fortune and USA Today.

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