True Religion Apparel is apparently hoping that a sale can repair its fraying financials.
The struggling maker of upscale denim said on Wednesday that it is exploring strategic options, the oft-used euphemism that means a company is considering a sale.
The clothing company has hired Guggenheim Securities and the law firm Greenberg Traurig as advisers, and its board has set up a special committee to consider possible transactions. The company has received approaches from potential buyers.
Founded in 2002, True Religion was one of the first sellers of high-end artfully tattered jeans that run upwards of $300, and it drew an array of celebrity customers. But the brand has since been eclipsed in the market of late by newer rivals and cheaper alternatives, leading the company to miss expectations for second-quarter sales and reduce its earnings forecast for the rest of the year.
True Religion's shares have plummeted 39 percent this year to $21.01, valuin g the company at $541.8 million. On Wednesday, its stock leaped 25 percent in premarket trading, to $26.40.
