Bankrupt True Religion Can Defer Rent for 60 Days Due to Virus

May 6, 2020, 9:40 PM

True Religion Apparel Inc. can put off paying post-bankruptcy rents for 60 days since the Covid-19 pandemic has forced the company to shut stores, a U.S. bankruptcy judge in Delaware said.

The company’s inability to access its rented premises because of the Covid-19 shutdowns is good cause for the 60-day extension authorized by the bankruptcy code, Judge Christopher Sontchi of the U.S. Bankruptcy Court for the District of Delaware said at a telephonic hearing Wednesday.

The hearing came after some landlords, a pre-bankruptcy lender, and the committee of unsecured creditors found some consensus with True Religion. The clothing retailer’s April ...

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