Diesel USA Inc. files for bankruptcy
Written by Nano on March 7, 2019
It is the American unit of the Italian Diesel SpA, that Tuesday filed for Chapter 11 protection from creditors with the U.S bankruptcy court in Delaware.
The recent downturn in the retail sector, and an increase in the online shopping doesn’t seem to spare Diesel USA Inc. According to Reuters, the American unit have been losing money over the last six years, with annual sales plunging 53 percent. The known theft and cyber fraud added to their loss.
Despite the bankruptcy, Diesel has no plans to close. Still they plan to close some of their 28 stores, where they’re not able to renegotiate their rent to a more cost-efficient level.
Diesel’s three-year business plan in contemplating in focusing on more profitable stores, improving its product lines and working with social media “influencers” to attract Millennials, “Generation Z” and other new customers.
A successful reorganization would enable Diesel USA to operate as an “iconic and profitable brand,” Chief Restructuring Officer Mark Samson said.