Apparel Company Files for Bankruptcy, Closing Locations & Laying Off 100+ Workers in North Carolina

Delta Apparel Closes Multiple Locations, Laying Off More Than 100 Workers

Photo byYahoo Finance

Delta Apparel, an apparel retail chain has filed for Chapter 11 bankruptcy protection and is seeking a new owner to stabilize its operations. This move has resulted in the filing of WARN notices with the North Carolina Department of Commerce, indicating potential mass layoffs across four locations in three counties by the end of August.

Potential Mass Layoffs

According to the notices, 224 employees are at risk of losing their jobs if a suitable transaction to sell the company is not concluded. "If the company is unable to conclude a suitable transaction, the planned closing will be permanent," the notice stated. The layoffs include:

• 156 employees across two locations in Fayetteville
• 46 in South Rowland
• 22 in Concord

All affected employees were notified that their positions might be terminated effective August 29, 2024. A company spokesperson expressed optimism amidst the uncertainty, stating, "We’re still hopeful the layoff doesn’t have to happen."

Financial Struggles and Bankruptcy

Delta Apparel's bankruptcy petition, reported by Bloomberg, listed approximately $337.8 million in assets against $244.5 million in total debt. The company's financial struggles have intensified, prompting the need for significant restructuring.

WARN Notice Details

• Cumberland County
• • Notice Number: 202400038
  • Date of Notice: 6/30/2024
  • Effective Date: 8/29/2024
  • Locations:
  • • 719 Dunn Road, Fayetteville - 55 affected
    • 1 Soffe Drive, Fayetteville - 101 affected
• Robeson County
• • Notice Number: 202400038
  • Date of Notice: 6/30/2024
  • Effective Date: 8/29/2024
  • Location:
  • • 13750 Hwy. 301 South, Rowland - 46 affected
• Cabarrus County
• • Notice Number: 202400038
  • Date of Notice: 6/30/2024
  • Effective Date: 8/29/2024
  • Location:
  • • 4735 Corporate Dr., Concord - 22 affected

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