Fayetteville-born brand at risk, jobs in jeopardy due to parent company's bankruptcy

Fayetteville-founded Soffe faces potential layoffs — more than 150 — as its Georgia-based parent company, known for its popular brands, filed for bankruptcy June 30, putting 224 jobs in North Carolina at risk.

Delta Apparel, the parent company of Salt Life, DTG2Go and Fayetteville-based activewear company Soffe Apparel, said in notices filed with the state Department of Commerce, that if it cannot finalize a sale, it will cut 156 jobs in Cumberland County, 46 jobs in Robeson County and 22 jobs in Cabarrus County by Aug. 29.

“If the company is unable to conclude a transaction, then the company will unfortunately have to make the difficult decision to discontinue operations,” it said in the notices.

Founded in Fayetteville in 1946, the Soffe brand was acquired by Delta Apparel in 2003 for $72 million, the Observer reported in 2003. Soffe is known for its popular cheer shorts and expanded to include athletic leisure apparel for women, men and children.

The Soffe Factory Outlet Store, originally located at 1005 Dunn Road, was relocated to 1 Soffe Drive after the owners decided to sell the Dunn Road building to the real estate development company RealtyLink, which leased the property to Amazon, the Observer reported in 2021. There are 101 jobs at risk in the outlet store.

A 218,768-square-foot Salt Life facility at 719 Dunn Road, which is used for apparel manufacturing and distribution, would close in Fayetteville as a result of this bankruptcy. There are 55 jobs at risk at this facility.

Brands for sale

Delta Apparel also announced in a June 27 filing with the U.S. Securities and Exchange Commission that it will sell the Salt Life brand to FCM Salt Life Holdings Inc. for $28 million. Delta Apparel had originally acquired the brand from its founders in 2013 for $37 million, according to a 2013 news release.

With Delta Apparel’s deal in place to sell its Salt Life brand, the company said that it will continue to operate while seeking buyers for its other assets, including Soffe and DTG2Go, which produces "on-demand" digitally printed apparel for other companies. Delta Apparel operates stores, distribution and manufacturing sites in the United States, Honduras and El Salvador.

In its Chapter 11 bankruptcy filing, the company reported assets of nearly $338 million and debts of approximately $245 million. A news release from May 8 revealed that the company's net loss had increased to $36.6 million, up from $7 million the previous year.

Attempts to reach Delta Apparel and M.J. Soffe via phone for comment were unsuccessful.

Reporter Lizmary Evans covers growth and development for The Fayetteville Observer. You can reach her at LEvans@gannett.com