Jeans maker and retailer Diesel USA Inc. has filed for bankruptcy protection, beset by changes in consumer buying habits that are plaguing other traditional retailers as well as internal missteps made by the company’s former leaders, WSJ Pro Bankruptcy reported. Diesel plans to make its trip through chapter 11 a quick one, with hopes of seeing its reorganization plan — which calls for Diesel to leave bankruptcy with fewer stores and a revamped business plan — receive court approval by April 11, according to court papers filed Tuesday. “The new management team has formulated a new strategic path over the next three years to restore the Diesel brand in the U.S., return the [company] to its pre-recession profitability, ensure its ability to continue operating in the U.S., and preserve hundreds of jobs in addition to creating new ones through opening new stores,” Mark Samson, Diesel’s chief restructuring officer, said in court papers. Because of its loyal customer base, some of Diesel’s stores as well as its wholesale and online operations have remained profitable, “though in need of growth,” Samson said. The U.S. entity is a part of Italian company Diesel SpA, which isn’t under bankruptcy protection. Diesel was founded overseas in 1978 and later launched in the U.S. in 1995.
