Diesel USA has filed for Chapter 11 bankruptcy protection.

Diesel USA has filed for Chapter 11 bankruptcy protection, citing declining sales and mounting losses due to expensive leases and cyber fraud. As part of the planned reorganization, some of the brand’s 28 US stores are going to be closed as Diesel refocuses on new customers including Millennials and Generation Z. The Italian holding, Diesel Spa, is not affected.

More about Bankruptcy :

Chapter 11 Bankruptcy: An Overview
Chapter 11 bankruptcy is designed to allow struggling businesses to restructure their finances and maximize the return to their creditors and owners.

A Chapter 11 case begins with the filing of a petition in bankruptcy court. Generally, Chapter 11 cases are voluntary. In a voluntary Chapter 11 case, it is the debtor who takes the initiative and seeks bankruptcy relief. Occasionally, however, creditors will band together to file an involuntary Chapter 11 petition against a defaulting debtor.

Most debtors file Chapter 11 where their primary place of business is located. Business debtors also can file bankruptcy where they are “domiciled” – i.e., incorporated or otherwise organized. Businesses incorporated in Delaware, for example, sometimes file bankruptcy there instead of their home states.

Chapter 11 cases usually are filed by corporations, partnerships, and limited liability companies. Individuals can file under Chapter 11 if they have too much debt or income to qualify under Chapters 7 and 13. (Learn more about qualifying for Chapter 7 bankruptcy and eligibility for Chapter 13 bankruptcy.)

When possible, however, most individual debtors elect to file bankruptcy under Chapter 7 or 13 to avoid the time, cost, and risk involved in Chapter 11 proceedings. In 2010, close to 1.6 million Americans filed bankruptcy under Chapters 7 and 13 – more than 100 times the number who filed Chapter 11 during the same time period.