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 sell itself, after receiving interest from potential buyers.

Shares in the company jumped 28 percent to $26.88 in premarket 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 its colorful jeans, which sell for up to $360 at specialty boutiques.

Lower demand for its women's range in particular, including jeans and shirts with serape patterns, prints and colored stitching, forced the company to cut its full-year profit outlook in July.

The Wall Street Journal reported earlier that the company had fielded buyout proposals from private equity firms and apparel industry companies. ()

True Religion said it had formed a special committee comprising non-management directors, and had engaged Guggenheim Securities LLC as financial adviser and Greenberg Traurig LLP as legal counsel to assist in the review.

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

True Religion, founded in 2002 by Chief Executive Jeffery Lubell, made its mark with jeans that featured colorful reinforced stitching and oversized low flap pockets.

Sales soared over the decade as celebrities such as Angelina Jolie, Jessica Simpson, Megan Fox and Jennifer Lopez were seen wearing the jeans.

However, sales growth has slowed in the past year, prompting plans by the company to introduce lower-priced clothes before the 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. +1 646 223 8780, outside U.S. +91 80 4135 6385)(neha.alawadhi.thomsonreuters.com@reuters.net))