True Religion

True Religion's 2017 bankruptcy ended the premium denim brand's decade as a fashion must-have. The company had pioneered $200+ jeans with distinctive horseshoe stitching, but couldn't survive when denim trends shifted from premium to athleisure. True Religion's mechanism failure was fashion cycle timing—the company's core product became unfashionable just as private equity debt came due. The mechanism failure was trend dependence without adaptation. True Religion built its brand on premium denim's cultural moment; when that moment passed, the company had no second act. Athleisure replaced denim as everyday wear for the demographic True Religion served. Yoga pants don't need horseshoe stitching. The company tried diversifying into tops and accessories but lacked brand permission—True Religion was denim. Private equity ownership (TowerBrook Capital Partners) had loaded the company with debt during the premium denim peak; servicing that debt while revenue declined forced bankruptcy. True Religion emerged from bankruptcy and continues operations, but as a smaller brand serving a niche rather than defining a trend. The company demonstrated how fashion brands built on single categories face existential risk when that category's cultural moment passes.