Breaking News: True Religion bought for $836 mil !!!

Breaking News: True Religion bought for $836 mil !!!

May 10, 2013 – Wall Street Journal and Associated Press report that True Religion Jeans have been bought out by private investment firm TowerBrook for $836 million.  TowerBrook had previously sold their stake in burgeoning brand Jimmy Choo in 2011 to German firm Labelux.  It seems TowerBrook is trying to add fashion back in their portfolio.

From the perspective of True Religion sales had been waning, operating profits were significantly low and growth had slowed to a snails pace in comparison to their incredible rise from 2008 – 2011.  Whether it was the vagaries of fashion or the fickleness of the buying public, it seems True Religion had lost popularity though there appeared to be no significant problems with the brand and its perception.  It had been rumored for a couple of years now that their best move was to sell themselves to right suitor, True Religion offered a solid company with a well-regarded and decently positioned chain of retail stores to with the fashion line.

Towerbrook sold Jimmy Choo knowing it had a lot of room to grow sales (over 20%) and a great deal of upside.  What inspired this move and what will this mean for True Religion?  Analysis to come on trendboardnyc.

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London

London is a Senior Editor and Co-Founder of trendboardnyc. He counts among his life's greatest accomplishments hiking to Machu Picchu and being able to play "Sweet Child O' Mine" on that Hello Kitty guitar (which he will one day own).

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