The COVID-19 pandemic has forced high-end jeans maker True Religion to declare bankruptcy, the second time since 2017 it has needed to do so. The retailer said it had little choice but to seek court protection after government shelter-in-place orders forced nonessential businesses to close their doors, creating a liquidity crisis for the company.
While the pandemic has revealed numerous businesses with shaky financial foundations, True Religion's bankruptcy might have investors wondering whether there could be something endemic to the denim industry that could cause other jeans makers like Levi Strauss (NYSE: LEVI), Wrangler and Lee jeans owner Kontoor Brands (NYSE: KTB), or even J. Crew's Madewell to also go under.
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