Diesel jeans is the latest victim in the second-wave retail culling.
It’s been reported that Diesel USA Inc., the premium denim and accessory brand whose five-pocket pants dominated pop culture in the 1990s and early 2000s, filed for bankruptcy in Delaware. Read on…
CelebNFashion247.com reports that The unit of Italy’s Diesel S.P.A. blamed plummeting sales, a botched turnaround, pricey leases and unwavering landlords.
Not to mention several instances of cyber fraud and theft that Diesel USA Inc has endured.
Here is what we know via Bloomberg:
The Chapter 11 petition filed with a three-year plan to correct a strategy that had it leasing expensive stores in premium locations estimates up to $100 million in assets and as much as $50 million in debt.
Unlike some other retailers that have announced massive store closures, Diesel USA doesn’t plan to shutter. Instead, its court papers described a plan to restore the Diesel brand in the U.S., including opening new stores and retrofitting some old ones to make them cheaper to operate.
The U.S. division, which listed $7.4 million in unsecured obligations to trade creditors, has 380 employees and 28 retail stores in the U.S., as well as relationships with department stores and specialty retailers. Its bankruptcy comes at a time when several chains that survived the first retail apocalypse are back in the spotlight.
Another known brand Payless shoes filed for bankruptcy last month, is abandoning 2,500 stores. The closings mark the biggest by a single chain this year and nearly doubles the number of retail stores set to close in 2019. – USA Today
There are more closures of popular brands that appears to be fading away like mall staples Victoria’s Secret and Gap and JC Penny all planning to reduce their footprints.
Victoria’s Secret said it will shut around 50 locations in 2019 — when it normally closes closer to a dozen each year; Gap said it’s closing 230 of its namesake brand’s stores over a two-year span; and J.C. Penney announced it plans to shut 18 department stores and nine of its furniture and home locations in 2019. – CNBC