Delta Apparel, the Georgia-based wholesale apparel maker and parent company of Salt Life, has filed for bankruptcy protection and says it has a deal in place to sell the beachy leisure brand and will continue to operate as it seeks buyers for its other assets.
Duluth-based Delta said in a Monday filing with the U.S. Securities and Exchange Commission that it will sell the Salt Life brand to FCM Salt Life Holdings Inc., which, if approved by U.S. Bankruptcy Court in Delaware, will serve as a “stalking horse.” As such, the $28 million agreement sets the floor for the Salt Life brand, though other bidders could step forward.
Salt Life, perhaps best-known for its decals on pickup trucks, SUVs, coolers and beachwear, makes men’s, women’s and children’s apparel, eyewear and other goods for beachcombers, anglers and divers. The brand has retail stores largely in Florida and elsewhere in the Southeast.
Delta acquired the Salt Life brand from its founders in 2013 for $37 million.
Delta also owns its eponymous line of casualwear, the activewear brand Soffe and a business making “on-demand” digitally printed apparel for other companies.
Delta filed for Chapter 11 protection on Sunday and reported assets of nearly $338 million and debts of nearly $245 million.
A message sent to Delta was not immediately returned.
Delta operates stores, distribution and manufacturing sites in the United States Honduras and El Salvador.
Net sales dropped about 30% in the quarter that ended in March compared to the same period a year ago. Delta reported a net loss attributable to shareholders of $36.3 million in its most recent quarter, compared to a loss of $6.9 million in the quarter that ended in March 2023.
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