Diesel Jeans Company Files For Bankruptcy - ATL Law 404-800-4001
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Diesel Jeans Company Files For Bankruptcy
Diesel USA, a jeans company known exclusively for their high end, extremely expensive jeans, filed for bankruptcy early morning on March 6. With the Chapter 11 filed, Diesel plans on making a strong come back, and even opening extra stores. However, there are several reasons that Diesel has stated as the reason behind their bankruptcy, many of which may surprise you. If you grew up in the early 90’s, you’ll remember that Diesel was our present day Gucci. Diesel USA is actually an Italian based company, with each and every pair of Jeans averaging a cost of $350.00. Designer clothes are at an all time high in demand, which provides the question; why did Diesel USA file for Chapter 11 Bankruptcy? This question and more will be answered in this article so keep reading.
Why did Diesel USA file for Chapter 11 Bankruptcy?
Diesel sited multiple sources of reason for their bankruptcy; bad investments, large losses in in-person sales at brick-and-mortar locations, and theft. Within the last 3 years alone, Diesel has seen a +/-30% loss in profit and sales. The truth is, Diesel just invested in the wrong thing; their stores. Simply put, people with serious money, who can afford Diesel jeans, don’t have time to shop at a store. The proof shows for itself; Amazon sales were able to provide a crutch, keeping sales from plummeting. On top of all of this, the amount of in store theft that has occurred has sky rocketed. In fact, it’s gotten so bad that over $1 million has been stolen from stores in the last 3 years alone. The bulk, if not almost all, of the stolen product is due to Diesel’s own workers involved in fraudulent acts, misrepresenting sales and stealing from the stores.
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