Delta Apparel Inc., parent company of the Salt Life activewear brand, was sold in a bankruptcy auction for $38.74 million on September 16 to brand management firm Iconix International and business management consultancy Hilco. The sale, approved by the court, includes the Salt Life brand and its assets.
Iconix plans to shift Salt Life’s focus toward e-commerce and wholesale, marking a significant change in the brand’s business model. As part of the restructuring, Salt Life’s 28 retail stores, spread across Alabama, California, Delaware, Florida, Georgia, New Jersey, New York, South Carolina, Texas, and Virginia, began liquidation sales on Friday, according to a statement by Hilco.
The Chapter 11 filing, submitted in Delaware court on June 30, showed Delta Apparel had $337.8 million in assets and $244.5 million in debts. The company’s top five creditors were owed a combined $29 million.
Grassroots beginnings
Founded by “four watermen” from Jacksonville Beach, Florida, Salt Life began as a grassroots apparel brand before expanding into performance wear, swimwear, accessories, and even branching out into restaurants and beer. (Salt Life Food Shack buinesses were not owned by Delta and are not effected by the bankruptcy court proceedings.)
In 2013, Delta Apparel acquired the brand for $15 million, when it had an annual revenue of $20 million. (By October 2023, Delta disclosed receiving an unsolicited offer for the brand, though the terms were not revealed.) Under Delta's ownership, Salt Life grew into a profitable business, generating over $60 million in revenue through a combination of over 1,700 wholesale outlets across 48 states, as well as direct-to-consumer sales via its website and branded retail stores.
However, Delta Apparel faced significant financial challenges in the last two years. Chief Restructuring Officer J. Tim Pruban pointed to reduced demand and liquidity issues, which were worsened by a surge in cotton prices in 2022 that increased production costs.
Despite attempts to cut expenses by reducing severance obligations and downsizing offshore manufacturing operations, the company continued to struggle with declining sales. Delta reported $78.9 million in sales for the second quarter of fiscal year 2024, down from $110.3 million the previous year. As liquidity worsened, Delta defaulted on its loan terms, leaving it with over $80 million in outstanding credit and just $2 million in cash when it filed for Chapter 11 bankruptcy protection.
Michael Hutto, one of Salt Life's cofounders, was sentenced to 12 years in prison in 2023 after pleading guilty to the 2020 fatal shooting of his teenage girlfriend and leaving her body to decompose in a Florida hotel, the Florida Times-Union reported at the time.
What happens next?
Hilco stated that “the Salt Life brand has widespread brand awareness and loyalty with ocean enthusiasts worldwide,” as liquidation sales began on September 20. In addition to merchandise, store fixtures and equipment are also for sale.
Gift cards will be accepted until October 20, and merchandise purchased before September 20 can be returned until then; all sales made after September 20 are final.
Here's the full list of store locations that will close:
Alabama
- Salt Life, 2601 S McKenzie St. #448, Foley, AL, 36535
California
- Salt Life, 207 Main St, Huntington Beach, CA, 92648
- Salt Life, 157 Avenida Del Mar, San Clemente, CA, 92672
Delaware
- Salt Life, 34986 Midway Outlet Dr. #123, Rehoboth Beach, DE, 19971
Florida
- Salt Life, 410 Plaza Real, Boca Raton, FL, 33432
- Salt Life, 1100 Cornerstone Blvd #910, Daytona Beach, FL, 32117
- Salt Life, 10676 Emerald Coast Pkwy W Space 136, Destin, FL, 32550
- Salt Life, 10801 Corkscrew Rd. #164, Estero, FL, 33928
- Salt Life, 713-A E Las Olas Blvd, Fort Lauderdale, FL, 33301
- Salt Life, 240 3rd St., Jacksonville Beach, FL, 32250
- Salt Life, 128 Breakwater Ct, Suite 200, Jupiter, FL, 33477
- Salt Life, 404 Duval St., Key West, FL, 33040
- Salt Life, 2312 Grand Cypress Dr. Suite 852, Lutz, FL, 33559
- Salt Life, 8001 S Orange Blossom Trail #252, Orlando, FL, 32809
- Salt Life, 3101 PGA Boulevard Suite P237, Palm Beach Gardens, FL, 33410
- Salt Life, 421 SW 145th Terrace, Pembroke Pines, FL, 33027
- Salt Life, 3405 Pier St, Pompano Beach, FL, 33062
- Salt Life, 16 S Boulevard of the Presidents, Sarasota, FL, 34236
- Salt Life, 2700 FL-16 Suite 713, St. Augustine, FL, 32092
- Salt Life, 1104 Broadway, Columbus, GA, 31901
New Jersey
- Salt Life, 80 Ocean Ave. N., Long Branch, NJ, 07740
New York
- Salt Life, 1215 The Arches Cir., Deer Park, NY, 11729
- Salt Life, 1220 Tanger Mall Dr., Riverhead, NY, 11901
South Carolina
- Salt Life, 1256 Fording Island Rd. Suite 275, Bluffton, SC, 29910
- Salt Life, 316 King St. Suite A, Charleston, SC, 29401
- Salt Life, 10835 Kings Rd #720, Myrtle Beach, SC, 29572
Texas
- Salt Life, 5855 Gulf Fwy, Texas City, TX, 77591
Virginia
- Salt Life, 5711 Richmond Rd. Suite B030, Williamsburg, VA, 23188