A South Carolina firm that no one saw coming has reportedly filed for bankruptcy as it searches for a new owner to help stabilize its operations.
The Salt Life line of beachwear and athletic wear sold by the retail chain Delta Apparel has recently filed for Chapter 11 bankruptcy.
As a result of this decision, the South Carolina Department of Employment and Workforce has received a number of WARN notices, suggesting that there may be mass layoffs at five different sites by the end of August.
According to the warnings, employees in Charleston, Myrtle Beach, Blufton, and Greenville would be laid off permanently “if the company is unable to conclude a suitable transaction” by August 29.
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Bloomberg stated that in their bankruptcy case, Delta Apparel detailed a total of $244.5 million in debt and about $337.8 million in assets.
There has to be a major reorganization at the corporation because their financial problems have gotten worse.
The Salt Life label, started by four surfers in 2003, has grown to represent beach culture through its T-shirts and board shorts that embody the essence of coastal living. In 2013, Salt Life was purchased by Delta Apparel.
The state was also hit by layoffs announced by FedEx not long ago.
FedEx has announced intentions to close four facilities, which will have an impact on employees in both North Carolina and South Carolina.
According to WARN warnings, 310 employees will be affected by the September Ship Center shutdowns.
In an effort to minimize costs and improve efficiency, the corporation is continuing to consolidate its network footprint by shutting down three Ship Centers in South Carolina: West Columbia, Florence, and Myrtle Beach, as well as another Ship Center in Conover, North Carolina.
According to an email statement that FedEx sent to Supply Chain Dive, the corporation is offering severance packages or relocation assistance to affected employees and will also provide openings at other neighboring facilities.
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