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Gucci is on the brink of bankruptcy.

The designer has filed for Chapter 11 protection and is asking for $1.3 billion in creditors relief, according to a filing with the U.S. Bankruptcy Court in San Francisco.

The company has filed a lawsuit in New York against the U-Haul, its largest distributor, alleging that the company failed to comply with several provisions of its lease with the company, according the court filing.

The filing comes as the clothing and accessories giant seeks to restructure its business.

The bankruptcy filing says Gucci has agreed to “modest modifications” of its current financial condition and the proposed restructuring, which could result in a reduction in the number of employees. 

Gucci said in the filing that it was forced to reorganize the company in March to reduce its debt burden and to maintain a strong competitive position.

It also said that it expects to pay about $1 billion in total interest and fees on its loans to U-haul and its third-party lenders.

It said it will also be working with creditors to develop a plan to resolve all outstanding issues. 

The U-haul company said it has agreed “to modify its current and future operating arrangements in accordance with the terms of its agreement with the Company.” 

The company has already filed for bankruptcy protection three times in the past three years.

In the first bankruptcy, in 2012, the company had $4 billion in debt. 

In 2015, the brand filed for protection against the bankruptcy of two companies: Macy’s and Saks Fifth Avenue.

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