Diesel USA Inc, the denim and accessory brand and subsidiary of Diesel S.p.A., filed for chapter 11 bankruptcy protection on Tuesday, blaming mounting losses, expensive leases, cyber fraud and changing consumer buying habits.
According to a court filing in the US Bankruptcy Court in Delaware, the company does not intend to close down, but will shut several of its 28 stores and relocate other ones to smaller, more cost-effective locations. The brand’s parent company is not part of the filing.
Operating losses at Diesel USA increased from 4 million dollars in 2014 to 27 million dollars in 2015. In 2018, the company had an operating loss of 24 million dollars.