From Runway to Ruin and Back: How True Religion Survived Fashion’s Fickle Cycle

True Religion’s story is a compelling narrative of innovation, cultural influence, and resilience in the volatile fashion industry. Founded in 2002 by Jeff Lubell and Kym Gold, the brand disrupted the denim market with premium, American-made jeans featuring distinctive horseshoe stitching and bold embroidery. Its early success was fueled by celebrity endorsements from stars like Jennifer Lopez, Kanye West, and Paris Hilton, turning the brand into a global status symbol by the mid-2000s. At its peak in 2011, True Religion generated $420 million in annual revenue and was sold in 900 stores across 50 countries. However, a confluence of challenges—including market saturation, rising competition, economic downturns, and internal leadership conflicts—led to a steep decline. The founders’ divorce in 2007 exacerbated tensions, with Kym Gold later detailing her marginalization in her memoir, highlighting broader issues of recognition and equity for women in business. In 2013, private equity firm TowerBrook Capital Partners acquired the brand for over $800 million in an attempt to stabilize operations. Despite restructuring, True Religion filed for Chapter 11 bankruptcy in 2017, citing shifting consumer preferences, unattractive product designs, and declining sales. The rise of athleisure further eroded demand for premium denim. Just as the brand began to recover, the COVID-19 pandemic struck, forcing the closure of 87 retail stores and eliminating 80% of its revenue overnight. This led to a second Chapter 11 filing in April 2020, resulting in the closure of 37 additional stores. The crisis prompted a strategic reset. Michael Buckley, who had led the brand during its heyday, returned as CEO in late 2019. Alongside Chief Marketing Officer Kristen D’Arcy, he spearheaded a revival focused on accessibility, nostalgia, and digital engagement. The company lowered its average price point to around $100, reintroduced iconic design elements like the horseshoe logo and Buddha imagery, and embraced the Y2K fashion resurgence popular with Gen Z. Collaborations with artists like Megan Thee Stallion and Quavo—whose personal connection to the brand included a True Religion tattoo—helped reestablish cultural relevance. The brand also diversified beyond denim, launching activewear, accessories, and even a pet lifestyle line, reflecting a holistic approach to consumer identity. By 2021, sales rebounded to $235 million, rising to $280 million by 2023. In early 2025, ACON Investments acquired a controlling stake in partnership with SB360 Capital Partners, signaling strong investor confidence in the brand’s turnaround. The new ownership aims to expand True Religion’s global footprint, enhance e-commerce capabilities, and accelerate product innovation. Today, the brand targets a $500 million revenue goal within four years, with half of sales expected to come from digital channels. True Religion’s journey underscores the importance of adaptability in fashion, where cultural relevance, consumer sentiment, and operational agility determine survival. It reflects broader industry shifts—from the decline of brick-and-mortar retail to the power of influencer marketing and nostalgia-driven design. The brand’s ability to resurrect itself after near-collapse demonstrates that legacy, when reimagined with authenticity and strategic foresight, can still command attention in a fast-moving world. True Religion is no longer just a denim label; it has evolved into a lifestyle brand navigating the intersection of heritage, trend, and digital transformation. Its story serves as both a cautionary tale about the fragility of fashion empires and an inspiring example of reinvention in the face of adversity.

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