WFCN –
Concerns about impending layoffs at its North Carolina business have been sparked by the bankruptcy filing of an unexpected Georgia company.
On June 30, Delta Apparel, a company hailing from Duluth, Georgia, sought a new owner after filing for Chapter 11 bankruptcy protection in Delaware.
“The planned closing will be permanent” if the company cannot find a suitable deal, as stated in a notice filed with the Department of Commerce.
Despite the company’s best efforts, a spokesman who asked not to be named expressed their hope that layoffs won’t be necessary.
In the next 30 to 60 days, Delta Apparel will have further information, according to the spokeswoman.
In its notice, the company explained that it was unable to give earlier notice because it was trying to find a way to keep operations running and honestly thought that the disruption to business that would have come with giving notice would have made it harder to get what it needed.
SEE MORE –
Change Consumer Taste! A Painful Bankruptcy Filed Announced By Struggling Clothing Brand
That next day, the business announced it may permanently shut down operations in Robeson, Cumberland, and Cabarrus counties in North Carolina by filing paperwork with the state.
According to Business NC, 156 jobs were lost in Cumberland County at a manufacturing and distribution location, 22 administrative jobs in Cabarrus County, and 46 jobs in Robeson County at a manufacturing plant in Rowland.
Documents submitted to the North Carolina Department of Commerce indicate that layoffs will take effect at all four locations on August 29.
After August 29th, all staff were informed that their employment might be eliminated.
SEE MORE –
Miss Forever! Massive Retail Chain Operating 29,000 Stores Declares Bankruptcy
As reported by Bloomberg, the bankruptcy filing of Delta Apparel revealed a total debt of $244.5 million and assets of about $337.8 million.
Its financial woes were exacerbated, according to court documents, by falling product demand and rising raw material costs, particularly cotton.
Stocks ended the day at 20 cents, a 55% decline.
A year ago, Delta Apparel was worth 2 cents and now it’s worth 45 cents.
In 2021, it was worth more over $30 on the market.
The previous year’s sales were $484.9 million, while last year’s were $415.3 million.
The following states’ notices were also filed: Georgia, South Carolina, Florida, Texas, and Arizona.
Several thousand people in Mexico and Honduras complement the roughly 600 people working for the firm in the United States.
In 2003, four surfers from Florida started the Salt Life brand, which sold beachy apparel like T-shirts and board shorts.
Along with M.J. Soffe, a Fayetteville-based supplier of casual and athletic apparel that Delta Apparel bought in 2003, the company was housed in the same building for a while after its acquisition in 2013.
M.J. Soffe, an Army veteran who passed away in 1946, established the corporation in North Carolina.