Another Clothing Retailer Declares Bankruptcy, Could Close All Stores

Clothing stores are among the many types of retailers where consumers are shopping less. In fact, things have gotten so bad financially for some that they've had to declare bankruptcy. Express , Rue21 , Ted Baker , Bob's Stores , Soft Surroundings and Outdoor Voices are just a few of the chains that have gone bankrupt, with many needing to shutter all of their locations. Now, another popular clothing retailer has filed for bankruptcy.

The parent company of Salt Life stores, the beach clothing shops with fishing shirts, board shorts, decals, apparel and more, has gone bankrupt and plans to sell the brand. Delta Apparel Inc., which is based in Duluth, Georgia, lost $24.2 million in recent months, with sales dropping 27%. In their court filing, the company explained , "A combination of reduced demand and difficulties obtaining raw materials have resulted in declining liquidity that Delta’s Board has been unable to counteract, despite their best efforts." In 2013, Delta acquired the brand, founded in 2003, paying $37 million for it. Over the years, they expanded it from its flagship Jacksonville store to its current 28 locations.

They have a potential deal in place to sell the company to FCM Saltwater Holdings for $28 million, but will still head to a bankruptcy court auction to see if there are any higher bids. The auction is set for August 20. If no other buyers are found and the deal with FCM Saltwater doesn't work out by August 29th, all Salt Life stores will likely be forced to close. The three Salt Life Food Shack restaurants in Northeast Florida will remain open though as they are not owned by Delta.