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Struggling Salt Life, Soffe parent could cut 224 NC jobs

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Struggling Salt Life, Soffe parent could cut 224 NC jobs

The struggling apparel company behind the Salt Life beachwear and Soffe activewear brands plans to eliminate 224 jobs in North Carolina if efforts to sell itself fall through.

In notices filed with the state Department of Commerce, Delta Apparel Inc. said it’s trying to sell the company. If it isn’t able to close a deal, it would cut 181 jobs in Cumberland County, 46 jobs in Robeson County and 22 jobs in Cabarrus County, the Duluth, Georgia-based company said.

“Due to financial and business difficulties, Delta Apparel … is currently seeking a sale of its business,” it said in the notices. “If the company is unable to conclude a transaction, then the company will unfortunately have to make the difficult decision to discontinue operations.” A Delta spokesperson didn’t immediately respond to a request for comment.

Companies are often required to provide advance notice of plant closings and mass layoffs under the federal Worker Adjustment and Retraining Notification Act. If the company isn’t able to complete a sale, the Delta operations listed in the North Carolina notices would close on Aug. 29, the company said.

Delta filed for chapter 11 bankruptcy on Sunday. The company and its subsidiaries plan to continue operating while Delta tries to sell off assets, it said in a filing with the U.S. Securities and Exchange Commission. The company said FCM Saltwater Holdings, a Delaware company, had agreed to buy Delta’s Salt Life assets for $28 million, but other bidders can offer more.

Delta is also the owner of Fayetteville-based Soffe Apparel, known for its running shorts that are popular with military personnel. Dozens of the jobs that could be eliminated are at a Soffe facility in Rowland and a Soffe and Salt Life distribution center in Fayetteville.

Delta recorded an operating loss of $24.4 million during the three months that ended on March 30. That’s up from an operating loss of $5.3 million in the same period a year earlier.

In recent weeks, several executives and board members have resigned from Delta, according to SEC filings. The company has also disclosed plans to close a number of units — including a garment-printing arm with some operations in Fayetteville and a manufacturing operation in Honduras — citing reduced demand, limited cash and an inability to raise capital.

Delta shares have dropped 96% this year, closing Tuesday at 26 cents per share.

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