Bankruptcy sale puts an end to SC-linked chain’s retail ambitions

By then, Delta Apparel had operated primarily as a T-shirt manufacturing operation. Like his former parents, he would find himself stuck in a difficult financial predicament.

One of the main culprits was the rise in cotton prices in 2022, which market experts largely attributed to a severe drought in the US southwest. In response, Delta Apparel cut production as it looked for alternative materials. This move not only hurt sales but also put the company in a bind.

Bankruptcy became inevitable in late June after lenders refused to make new loans to the cash-strapped company, according to J. Tim Pruban, who was hired this year to run the business.

“The combination of reduced demand and difficulties obtaining raw materials resulted in reduced liquidity, which the Delta board was unable to counteract despite its best efforts,” the restructuring chief said in a sworn court affidavit.

The company’s clothing lines included Callaway and Perry Ellis, but Salt Life was among its most successful investments. In addition to the company-operated locations that are now being closed, Delta Apparel has also managed to scrap the label at thousands of other retail locations, from small surf shops to department stores.

In fiscal 2023, which ended Sept. 30, the parent company told shareholders that Salt Life generated sales of $59 million and operating income of $6.1 million. Gross profit margin exceeded 54 percent.

Delta Apparel filed for bankruptcy on June 30, putting the business on hold.

The bidding group, led by Iconix, emerged victorious in a recent court-supervised auction, paying $38.74 million for Salt Life. Work will now take over, like a surfer waiting for the next wave. management and licensing series They include names like London Fog, Mossimo, Candies and Umbro.

“The Salt Life brand has widespread recognition and loyalty among ocean enthusiasts around the world,” the new owners said.