DELTA APPAREL, INC: restructuring charge — Delta Apparel suspends Honduras manufacturing ops; ~2,413 employees affected due to liquidity challenges

DELTA APPAREL, INC

Suspended Honduras manufacturing on June 6, 2024; suspension expected for at least 120 days while exploring sale or permanent wind-down of offshore operations.
Approximately 2,413 employees impacted; company had previously wound down Mexico operations and is seeking sale of El Salvador plant.
Deteriorating liquidity prevents purchase of raw materials and payment of offshore employee compensation; credit facility covenant non-compliance remains uncured.
Restructuring charges (employee benefits, facility closure costs) expected beginning Q3 FY2024, but amounts are currently unestimable.
Also exploring potential sale of Salt Life business and all strategic alternatives with legal and financial advisors.

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

DELTA APPAREL, INC announced a restructuring affecting Honduras manufacturing operations (approximately 2,413 employees).

Type: restructuring
Affected area: Honduras manufacturing operations
Headcount: approximately 2,413 employees

Exact text from the filing

On June 6, 2024, Delta Apparel, Inc. (the “Company”) committed to a plan to formally suspend its manufacturing operations in Honduras due to ongoing liquidity challenges.

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Source: SEC EDGAR

accession 0001437749-24-020480

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