True Religion’s Next Chapter: A Strategic Acquisition and Promising Future

True Religion, a denim brand that epitomized Y2K-era fashion, has entered an exciting new phase after being acquired by private equity firm ACON Investments and retail investment fund SB360 Capital Partners. This strategic move, supported by the leadership of SB360 Chairman and American Eagle CEO Jay Schottenstein, signals a significant milestone in the brand’s remarkable resurgence under CEO Michael Buckley.

A Transformative Partnership

Emerging from its second bankruptcy in 2020, True Religion has made an impressive comeback. The brand reported a 20% increase in sales in 2023, totaling $280 million, with an EBITDA of $80 million. After going up for sale last year, the acquisition by ACON Investments and SB360 Capital marks a pivotal step in its journey. While the terms of the deal remain undisclosed, analysts speculate that the sale likely reflected a mid-single-digit multiple of the company’s earnings.

“This partnership with ACON and SB360 ushers in an exciting new chapter for True Religion,” said CEO Michael Buckley. “With their expertise and resources, we are set to enhance our digital and retail capabilities, accelerate international expansion, and continue to innovate our apparel offerings.”

Partners with Proven Expertise

ACON Investments, a Washington, D.C.-based private equity firm managing $7.2 billion in assets, boasts a strong track record of supporting consumer-focused brands, including Applebee’s, Igloo, Spirit Halloween, and Borden Dairy. SB360, as a strategic partner, brings additional retail expertise through its affiliation with Schottenstein’s expansive business network, which includes American Eagle and DSW.

Together, these firms offer the resources and insights to help True Religion refine its operations, strengthen its e-commerce platform, and capitalize on international growth opportunities.

A Journey of Resurgence

Since its founding in 2002, True Religion has been synonymous with premium denim, recognized for its bold stitching and iconic Buddha and horseshoe logos. It quickly gained popularity among celebrities like Jessica Simpson and Britney Spears. However, by the 2010s, the brand faced declining relevance, culminating in bankruptcy filings in 2017 and again during the COVID-19 pandemic.

Buckley, who returned to helm the company in 2019, has been instrumental in reviving its fortunes. By cutting expenses, diversifying the consumer base to include individuals with an average income of $60,000 to $65,000, and introducing more affordable price points, Buckley repositioned the brand for success. Today, True Religion jeans are typically priced under $100, making them accessible to a broader audience.

“You have to understand your consumer,” Buckley said in an interview. “The previous management was still targeting the customers they had in 2010, who had already moved on. The focus now is on the followers who resonate with the brand today.”

The Role of Strategic Marketing

Chief Marketing Officer Kristen D’Arcy has spearheaded a marketing overhaul that leverages influencer collaborations and taps into the Y2K nostalgia trend. Partnerships with stars like Megan Thee Stallion and influencer Jayda Cheaves, who has nearly nine million Instagram followers, have reinvigorated True Religion’s appeal among younger consumers. This marketing shift aligns with a broader resurgence in denim’s popularity.

Positioned for Growth

With ACON and SB360 backing its vision, True Religion is set to expand internationally, grow its direct-to-consumer sales, and reach a more diverse audience, including more female consumers. Buckley has an ambitious goal of transforming True Religion into a billion-dollar brand, leveraging its strong momentum and the current revival of Y2K-inspired fashion.

As True Religion builds on its renewed popularity and operational success, it stands poised to cement its place as an enduring icon in the denim industry, ready to redefine the next era of fashion.

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