Boutique denim company Diesel Jeans has filed for Chapter 11 bankruptcy protection, wavering under the strain of some $7.4 million in unsecured trade obligations, according to First Day Motions filed in bankruptcy court in Delaware.

From  its  founding  until  the  2008  recession, the company, which is headquarted in Italy, was  both  iconic  and profitable; but it has suffered amid the downturn of the brick and mortar retail industry. Between 2011 and 2014, Diesel was beginning to see some improvement from the peak recession years of 2008-2010. Since 2014, however, its sales  have  declined  precipitously while  its  losses  have  mounted.  The company's losses are concentrated at its full-price brick-and-mortar stores, according to the filing.

As part of its restructuring plan, the company said it will look to optimize its retail business by relocating certain existing stores and opening new  stores  in  smaller,  more  cost-effective  locations,  and  refitting  several existing  locations  to  make  them  more cost-effective  by  reducing  future  capital expenditures.