Last October, True Religion said it was possible to sell the company, noting that it had received offers from multiple potential buyers and that Korean fashion giant E-Land Group was among the bidders. After the news of the sale came out, the company’s share price soared.
In the view of Ye Qi-ying, editor-in-chief of Guanchao, True Religion’s sale is for the purpose of cash flow. “Brands have also developed to a certain extent, and even greater development is difficult.” In his view, True Religion is not necessarily as attractive as designers with their brands.
Some insiders told reporters that the concept of high-end jeans was introduced in 2005 and 2006, but it has not been mentioned much recently. “The market may not be as big as it was at that time. After all, the price is more expensive.” Ye believes that although high-end jeans have been popular for some time, the demand for “Tide” will eventually stabilize. True Religion has a tough future and it is also a good choice to sell them at a good price.
A person close to True Religion pointed out that the founder had previously worked for others at a very good price for the brand. Reporters learned that in March this year, the company’s CEO Jeff Lubell announced his resignation and was appointed honorary chairman and creative adviser. True Religion, founded by Guggenheim Securities LLC, was set up by non-management directors to hire Greenberg Traurig LLP as financial and legal adviser to handle the sale.