Rob Tannenbaum/Nasdaq, via Associated PressJeffrey Lubell, the chief executive of True Religion Apparel, at the Nasdaq in 2006.True Religion Apparel, the struggling maker of upscale denim, is apparently hoping a sale can repair its fraying financials.
The company said on Wednesday that it was exploring strategic options, the euphemism often used when a company is considering selling itself.
True Religion has hired Guggenheim Securities and the law firm Greenberg Traurig as advisers, and its board has set up a special committee to consider possible transactions. The company has received approaches from potential buyers.
Documents: True Religion news releaseFounded in 2002, True Religion was one of the first sellers of high-end artfully tattered jeans that cost upwards of $300, and it drew an array of celebrity customers. But the brand has since been eclipsed in the market by newer rivals and cheaper alternatives, leading the company to miss expectations for second-quarter sales and reduce its earnings forecast for the rest of the year.
True Religion’s shares have plummeted 39 percent this year, to $21.01, valuing the company at $541.8 million. On Wednesday, its stock leaped 25 percent, to $26.40, in premarket trading.
Source Article from http://dealbook.nytimes.com/2012/10/10/true-religion-puts-itself-up-for-sale/?partner=rss&emc=rss
DealBook: True Religion Puts Itself Up for Sale
No comments:
Post a Comment