Maximalist, Y2K-era styles are making a comeback in True Religion's sale.

• True Religion, a jeans brand that survived two bankruptcies during the Y2K era, is considering a sale.
• Numerous private equity firms and public apparel companies are being considered as potential buyers.
• The company, renowned for its sewing and horseshoe emblem, has gained a new customer base and has high customer loyalty, according to a survey conducted by the company.

True Religion, a Y2K-era jeans brand, is being considered for sale by the hedge fund that owns it, as it experiences growth and profitability following its second bankruptcy, according to CNBC.

Last year, True Religion experienced a 20% increase in sales, reaching approximately $280 million, and generated $80 million in earnings before interest, taxes, depreciation, and amortization, sources revealed.

The people who spoke on the condition of anonymity said that True Religion could sell for a mid-single-digit multiple of its EBITDA, but it's unclear what valuation the company is seeking.

The sale process commenced in January, and the sellers have identified a variety of private equity firms that focus on consumers as well as several large, publicly traded apparel companies as potential buyers, according to sources.

Baird has been appointed by Farmstead Capital Management, the owner of True Religion, to manage the sale process.

Baird and True Religion declined to comment on the sale.

Over the past decade, True Religion has experienced a tumultuous journey, marked by its distinctive stitching, embroideries, and logos featuring a smiling Buddha and horseshoes.

In 2002, the Los Angeles fashion scene saw consumers gravitating towards maximalist styles offered by brands such as Von Dutch and Juicy Couture. True Religion's flashy jeans quickly became a must-have among A-listers like Jessica Simpson and Britney Spears.

According to CEO Michael Buckley, True Religion's jeans were priced at approximately $200 to $300 per pair at the time, and the company targeted female consumers with an annual income of around $200,000 who typically shopped at high-end department stores such as Neiman Marcus, Bloomingdales, and Saks Fifth Avenue.

In 2003, True Religion went public and gained attention for its rapid expansion and financial success. However, as the years passed, the company faced intensified competition from more affordable options like H&M and Zara.

In the 2010s, athleisure became popular while denim lost its appeal. The brand went private in 2013 and by 2017, it had gone bankrupt.

True Religion emerged from bankruptcy twice, first in the past and then again in 2020 during the Covid pandemic. However, the brand's financial struggles are now a thing of the past.

Buckley, who led True Religion during its 2000s peak and returned in 2019, has streamlined the brand while staying true to its maximalist roots. With the resurgence of Y2K-era styles, the brand has adapted to a new consumer base.

True Religion's typical customers are diverse with an average income of $60,000 to $65,000. Its jeans are now priced at less than $100 a pair, which is competitive with brands like Levi's and Gap, and more affordable for its customer base.

Buckley stated in a CNBC interview that the previous management, prior to his return, was still targeting the wrong customer based on their assumptions from 2010. He explained that the brand had left its followers behind, and there were more followers today than there were in the early days, who wanted the brand back.

True Religion's net promoter score is more than 10% higher than its competitor peer set, including mega brands like Levi's, , Michael Kors, and others.

Buckley intends to increase True Religion's revenue to a billion dollars by concentrating on digital sales, broadening its product range, and attracting female customers.