True Religion is exploring a potential sale of the business or a minority stake that could value the denim brand at nearly $1 billion, according to people familiar with the matter cited by Reuters.
The apparel retailer, owned by private equity firm ACON Investments, is working with JPMorgan to assess its options. The process remains at an early stage, and the company has not publicly commented on the potential transaction. True Religion, ACON Investments and JPMorgan declined to comment.
Since ACON acquired the business nearly two years ago, True Religion’s earnings before interest, taxes, depreciation and amortization (EBITDA) have almost doubled, approaching $150 million annually. The brand generates approximately $550 million in annual revenue, according to the sources.
True Religion
From Bankruptcy to a Denim Comeback
Founded in Los Angeles in 2002, True Religion built its reputation as a premium jeans label popular with celebrities and recognized for its distinctive “Super T” stitching.
However, the brand faced financial difficulties as consumer preferences shifted toward athleisure and more affordable clothing. It filed for bankruptcy in 2017 and again in 2020 during the pandemic.
Since then, True Religion has broadened its product offering, introducing lower-priced denim and expanding into additional categories for different genders and age groups. The company now describes itself as an urban casual lifestyle brand.
The label has also benefited from renewed interest in early-2000s fashion, bringing its distinctive denim styles back into the spotlight.
Jeans currently account for approximately 35% to 40% of the company’s revenue, CEO Michael Buckley said on a podcast earlier this month.
Retail Expansion Supports Growth Strategy
Headquartered in El Segundo, California, True Religion operates approximately 60 physical stores and has set a target of expanding its retail network to 150 locations, according to Buckley.
The company’s growth strategy combines its established denim identity with a broader lifestyle offering, positioning the brand to reach consumers seeking both nostalgic designs and more accessible price points.
ACON acquired a controlling stake in True Religion in December 2024 alongside SB360 Capital Partners, an affiliate of the Schottenstein family, which has extensive retail industry experience.
Jay Schottenstein, chairman of SB360, also serves as CEO of American Eagle Outfitters.
A potential transaction would mark another significant development in True Religion’s recovery, following years of financial restructuring and its renewed focus on growth. However, discussions remain preliminary, and it is unclear whether the process will result in a sale or minority investment.
