Friday, November 27, 2020

Tag: Brick-and-Mortar Meltdown in June: Who Got Crushed?

Brick-and-Mortar Meltdown in June: Who Got Crushed?

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by Wolf Richter, Wolf Street:
The private-equity protocol of asset stripping bears fruit.

Today, premium-denim designer and retailer True Religion Apparel with 1,900 employees filed for Chapter 11 bankruptcy. Its celebrities-endorsed products are sold in its 140 True Religion and Last Stitch retail stores and in struggling brick-and-mortar department stores, including at Bloomingdale, Nordstrom, and Saks Fifth Avenue.

Bankruptcy rumors had been swirling since October when the company hired a law firm specialized in bankruptcy and restructuring – a dead-giveaway that shareholders and creditors are going to feel some pain.