UPDATE 2-Denim maker True Religion says exploring sale

* Receives interest from potential buyers

* Shares up 28 percent in premarket trade

* Proposals from private equity firms and rivals - WSJ

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Oct 10 (Reuters) - Jeans maker True Religion Apparel Inc, which has been hit by falling sales, said it may sellitself, after receiving interest from potential buyers.

Shares in the company jumped 28 percent to $26.88 inpremarket trade on Wednesday, valuing it at about $683 million.They had fallen by about a quarter in the last three months.

True Religion has been hit by falling demand for itscolorful jeans, which sell for up to $360 at specialtyboutiques.

Lower demand for its women's range in particular, includingjeans and shirts with serape patterns, prints and coloredstitching, forced the company to cut its full-year profitoutlook in July.

The Wall Street Journal reported earlier that the companyhad fielded buyout proposals from private equity firms andapparel industry companies. ()

True Religion said it had formed a special committeecomprising non-management directors, and had engaged GuggenheimSecurities LLC as financial adviser and Greenberg Traurig LLP aslegal counsel to assist in the review.

No decision has been made to engage in any transaction, thecompany said in a statement.

True Religion, founded in 2002 by Chief Executive JefferyLubell, made its mark with jeans that featured colorfulreinforced stitching and oversized low flap pockets.

Sales soared over the decade as celebrities such as AngelinaJolie, Jessica Simpson, Megan Fox and Jennifer Lopez were seenwearing the jeans.

However, sales growth has slowed in the past year, promptingplans by the company to introduce lower-priced clothes beforethe holiday season to turn around its women's apparel business.

(Reporting by Neha Alawadhi and Siddharth Cavale in Bangalore;Editing by David Cowell and Sreejiraj Eluvangal)

((neha.alawadhi@thomsonreuters.com)(within U.S. +1 646 2238780, outside U.S. +91 80 41356385)(neha.alawadhi.thomsonreuters.com@reuters.net))