True Religion acquired by Acon Investments and Schottenstein affiliate
True Religion has new owners.
The denim apparel and lifestyle brand has been acquired by private equity firm Acon Investments and its partner, SB360 Capital Partners, an advisory and retail investment fund chaired by American Eagle Outfitter CEO and executive chairman Jay Schottenstein. Acon and SB360 will utilize their combined resources and sector expertise to accelerate True Religion's further growth, broaden its geographic reach and continue the diversification of its product offerings, according to an Acon release.
The financial terms of the deal were not disclosed.
“Our partnership with Acon and SB360 represents an exciting new chapter for True Religion,” said Michael Buckley, who is CEO and a “significant“ minority shareholder. “With their expertise and resources, we are poised to enhance our digital and retail capabilities, accelerate our international growth and continue innovating our apparel offering. We look forward to working together as we bring True Religion's bold, authentic style to even more consumers around the world."
Founded in 2002, True Religion filed for bankruptcy protection in 2017 after its super-popular — and pricey — jeans fell out of favor with consumers. It exited bankruptcy four months later, but filed again, in April 2020, amid the COVID pandemic.
The brand has made a comeback in recent years, expanding into new product categories, expanding overseas and partnering with influencers. It also has been growing in brick and mortar. True Religion currently operates more than 51 stores and has a wide array of longstanding wholesale partners.
[READ MORE: : True Religion opens four more stores — eyes big expansion]
“We seek out brands with a strong core identity and a passion for leading a market segment,” said Aaron Miller, president of SB360. “The growth since 2020 is unprecedented and by leveraging our expertise in retail, we are confident we can help the company to continue to thrive. Our investment reflects our belief in the company's growth potential and continued innovation in the fashion industry.”
True Religion will operate independently, with its headquarters remaining in Gardena, Calif. The company will continue to deliver unique denim and lifestyle products to consumers worldwide while exploring opportunities for collaboration and innovation within Acon's and SB360's diverse portfolios.
"True Religion has built a unique and powerful brand with a loyal customer base and a deep connection to its core values of authenticity, quality and self-expression,” said Suma Kulkarni, managing Partner of Acon. “Our partnership with SB360 will provide valuable additional resources essential to unlocking the company's full potential."
Financing for the acquisition was led by the company's incumbent lender Second Avenue Capital Partners LLC, as well as Alpha Wave Global LP and Sagard Credit Partners.
Pillsbury Winthrop Shaw Pittman LLP and Hogan Lovells served as transaction counsel and fund counsel, respectively, to Acon. Robert W. Baird & Co. and Akin Gump Strauss Hauer & Feld LLP served as financial advisor and transaction counsel, respectively, to True Religion.
