It’s not easy for apparel companies to stand up to the test of time. As the years go by, these companies are forced to adapt or die. And that holds true in more ways than one. In addition to keeping up with the latest styles, apparel companies must also keep their prices in check. Unfortunately, over the past few years, a large number of apparel companies have gone bankrupt or been forced to downsize for one reason or another. In the slides to come, we’ll examine these companies, including what went wrong.
Diesel Invested Too Much, Too Fast
In March 2019, the well-known denim brand Diesel filed for bankruptcy as the result of declining sales at its nearly 30 physical locations in the United States. In addition to slumping sales, the company got itself into trouble by making a $90 million investment in its stores, with little to show for it. When combined with $1 million+ in fraud and theft-related losses, it was too much for the brand to overcome.
To date, Diesel has plans on keeping its stores open. The company has a plan in place for cutting costs, improving the efficiency of its existing stores, and even opening new stores.