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Delta Apparel filed for Chapter 11 bankruptcy protection in the District of Delaware court on June 30.
As part of the bankruptcy filing, Delta Apparel estimated that it had assets of $100 million to $500 million vs. liabilities of $100 million to $500 million. The debtors will continue to operate their businesses as a debtor-in-possession and pursue a structured sale of their assets pursuant to one or more competitive bidding processes or other strategic arrangements involving such assets. The debtors are also seeking approval of “first day” motions containing customary relief intended to enable the debtors to continue their ordinary course operations during the Chapter 11 cases.
Delta Apparel’s (NYSE:DLA) roots can be traced back to the early 1990s, when it emerged as a subsidiary of Delta Woodside Industries, a textile manufacturing company. In the early years, Delta Apparel focused on producing basic activewear and casual apparel. Over time, the company expanded its product offerings and distribution channels. A significant milestone was the acquisition of the Duck Head brand in the early 1990s, which helped boost Delta’s apparel sales and profits. The company also invested in modernizing its manufacturing facilities, such as opening a new ultramodern yarn plant in Edgefield, South Carolina, in 1992. The company went public in June 2000. Since then, Delta Apparel (DLA) has evolved into a vertically integrated, international apparel company focused on the design, manufacturing, sourcing, and marketing of a diverse portfolio of activewear and lifestyle apparel products. The company’s growth strategy has included strategic acquisitions and expansions into new market segments.
Shares of Delta Apparel (DLA) fell 33% in premarket trading on Monday to $0.39. The apparel stock once traded in the $30s.