True Religion Apparel Inc. has gotten the green light for a reorganization plan that keeps more than half of its stores open.
The denim and apparel company has received approval for its reorganization plan from a bankruptcy court in Delaware and said it expects to exit bankruptcy in about ten days. The plan keeps more than 50 of True Religion approximate 87 stores open.
True Religion, which was represented by Cole Schotz, filed for Chapter 11 bankruptcy protection in April. It was one of the first retailers to cite the COVID-19 pandemic in its filing.
The Cole Schotz team assisted the retailer with all aspects of its reorganization, including a settlement with a group of lenders owed $65.8 million that enabled the company to finalize the terms of its reorganization plan.
Bankruptcy Court Christopher S. Judge Sontchi praised management and the professionals for successfully reorganizing a retail establishment during COVID-19, calling it an “unusual” feat even before the pandemic.