Diesel USA Files Bankruptcy

Diesel USA (New York) filed for Chapter 11 bankruptcy protection this week, though it does not currently have plans to close any of its 28 retail stores.

However, according to New York Business Journal, the company does plan to exit some locations where landlords are unwilling to offer lease concessions.

The news comes as the company has suffered six straight years of annual losses. The company has also suffered from theft and cyber fraud, which has cost it $1.2 million over the past three years.

According to the filing, the company has laid out a three-year turnaround plan that includes locating stores in more profitable areas and updating other existing ones so that they are more efficient and affordable to operate.