True Religion Apparel Inc. has secured Goldman Sachs & Co. to advise the L.A.-based denim company on a possible sale, according to investment banking sources and a report in Women's Wear Daily.
The move comes after Charles Lesser, True Religion's chief financial officer, disclosed that the company would be interested in a deal with a private equity firm. But strategic buyers looking to expand their portfolio of brands could be among other probable candidates vying to take over True Religion.
Both strategic buyers and private equity firms have been active in the L.A. area apparel market. Private equity firms snapped up local jeans brands Seven for All Mankind LLC and Citizens of Humanity within the last two years. Strategic buyers who've transformed L.A. brands into powerhouses include Liz Claiborne Inc., which pumped up local track suit specialist Juicy Couture into an all-encompassing fashion supplier.
True Religion's sales are on a rise. For the quarter ended March 31, the company racked up nearly $36 million in revenues, up from $25.5 million for the like period a year earlier. On Monday, True Religion shares closed at $17.30, down from the previous closing price of $17.90.
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