Delta Apparel Files for Bankruptcy, Agrees to Sell Salt Life Brand
The company lists more than $244 million in total debt.
Delta Apparel, Inc., parent company of brands such as Salt Life and Soffe, has filed for bankruptcy. In a July 1 announcement, the company revealed that there is a deal in place to sell its Salt Life brand to Forager Capital Management, an estimated $28 million transaction.
In Monday’s bankruptcy filing, the company said that an increase in materials costs as well as decreased demand for its products led to financial struggles.
Vice President, Chief Accounting Officer, and Treasurer, Nancy P. Bubanich, announced she will resign from her position effective July 26. Delta lists more than $337 million in assets along with $244 million in total debt, according to the filing.
In a June 18 SEC filing, the company announced it would close a major portion of its direct-to-garment (DTG) and print-on-demand business.
In a quarterly report filed with the SEC on May 9, Delta disclosed that it has been “keenly focused on evaluating its business strategies and managing its working capital and costs in light of significant market, operational, and liquidity challenges.”
