Apparel retailer True Religion explores sale, sources say

By Reuters News

By Abigail Summerville

NEW YORK, Oct 16 (Reuters) - Clothing retailer True Religion is exploring options including a full sale or minority stake sale that could value the brand, known for its denim, at close to $1 billion, according to people familiar with the matter.

The company, owned by ACON Investments, is working with JPMorgan on the process, which is at an early stage, the people said, requesting anonymity to discuss a confidential matter.

ACON acquired True Religion almost two years ago, and since then the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) have nearly doubled, approaching $150 million annually, the people said. The brand generates close to $550 million of annual revenue, they said.

True Religion, ACON and JPMorgan declined to comment.

Founded in 2002, True Religion launched in Los Angeles as a premium jeans brand popular with celebrities and known for its bold "Super T" stitching. Fifteen years later, it went bankrupt twice, in 2017 and then during the pandemic in 2020, as consumer tastes shifted away from denim and towards athleisure and more affordable brands.

True Religion now offers lower-priced denim and a broader range of products across categories, genders and age groups.

Jeans account for 35% to 40% of its revenue, its CEO Michael Buckley said on a podcast this month. The company describes itself as an "urban casual lifestyle brand" and has benefited from shoppers' nostalgia for early 2000s style.

The El Segundo, California-based company operates around 60 brick-and-mortar stores with a goal to hit 150 stores, Buckley said on the podcast.

ACON acquired a controlling stake in the business in December 2024 alongside SB360 Capital Partners, an affiliate of the Schottenstein family, veterans of the retail industry. Jay Schottenstein, chairman of SB360, serves as CEO of American Eagle Outfitters AEO.N.

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