Delta Apparel’s stock is being delisted from the NYSE American, formerly known as the American Stock Exchange, as the apparel manufacturer proceeds with Chapter 11 bankruptcy.
A new filing with the Securities and Exchange Commission (SEC) indicated that the Duluth, GA-based supplier’s common stock will be removed from the NYSE American at the opening of business on July 22.
“The common stock is no longer suitable for continued listing and trading” because of the bankruptcy proceedings, the filing said. “In reaching its delisting determination, NYSE Regulation notes the company’s disclosure regarding the expectation that holders of shares of the company’s common stock will experience a complete or significant loss on their investment, depending on the outcome of the Chapter 11 cases.”
Trading in Delta Apparel’s stock has been suspended since July 1 in the immediate aftermath of the bankruptcy announcement. Delta Apparel could have appealed the delisting/removal but did not.
Delta Apparel and its direct/indirect subsidiaries are pursuing Chapter 11. The company has agreed to sell its flagship retail brand, Salt Life, for a reported $28 million to Delaware-incorporated FCM Saltwater Holdings. The deal needs court approval, and others can still bid on buying the sun-and-sea lifestyle brand. Delta Apparel bought Salt Life in 2013 for a reported $37 million.
Chapter 11 is a form of bankruptcy that involves a court-supervised “reorganization” of a debtor’s assets and liabilities. It allows a company to operate as it goes through bankruptcy, which is what Delta Apparel plans to do, at least for a time, according to papers filed with the SEC.
Delta Apparel is also reportedly looking to sell other assets it owns, including North Carolina-based Soffe, an athletic wear brand. A notice filed with the North Carolina Department of Commerce indicated that, if Delta Apparel can’t sell Soffe, the brand’s operations will be discontinued, resulting in 224 jobs being lost in the Tar Heel State.
“If the company is unable to conclude a transaction, then the company will unfortunately have to make the difficult decision to discontinue operations,” Delta Apparel said.
Before the bankruptcy, Delta Apparel had been sustaining losses as its sales plummeted. Former CEO Robert W. Humphreys was forced to resign in May, and other executives and board members departed in the weeks that followed as a restructuring/bankruptcy specialist began leading the apparel maker.
In June, Delta Apparel shuttered its DTG2Go printing division. The closure occurred shortly after the suspension of operations at a Delta Apparel manufacturing facility in Honduras.
Based on estimated 2022 North American promotional products revenue of $49.6 million, Delta Apparel ranked 37th on Counselor’s most recent list of the largest suppliers in the industry. The new list is due out this summer.
