Jeans maker Diesel USA files for bankruptcy protection

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Jeans maker Diesel USA files for bankruptcy protection

Diesel USA Inc., widely known for the denim and other accessory brands for its jeans, had filed for a bankruptcy protection on Tuesday, the 5th of March 2019, accusing escalating losses, sales drop, cyber fraud and costly leases behind their decision.

On Tuesday (March 5th), with the US bankruptcy court at Delaware, the New York-based unit of Italy’s Diesel SpA had filed for a Chapter 11 bankruptcy protection. In the filing, Diesel USA had mentioned that they were the sole distributor of Diesel productions including Denim and other jeans products in the US since its launch in 1995.

Apart from that, the Denim maker had also said they had been draining money for six straight years, posting an annual plunge of 53 percent to $104 million. Besides, cyber theft and fraud had also cost them $1.2 million over the last three years, added the Diesel USA in their bankruptcy filing.

The Chief Restructuring Officer of Diesel USA, Mark Samson had been quoted saying in a court filing that the company had no plans to close, but were expected to close some of their 28 stores, where multiple landlords had been refusing to proffer lease concessions, leading to heavy losses.

According to Diesel USA, the company had a lump-sum of $50-$100 million of assets and $10-$50 million in liabilities.