Salt Life Beverage, LLC and six affiliated debtors—anchored by publicly traded parent Delta Apparel, Inc.—are in Chapter 7 liquidation after the voluntary Chapter 11 cases filed June 30, 2024, in the District of Delaware were converted on April 2, 2025, following the withdrawal of the only consensual plan.
The debtor group operated as a vertically integrated apparel company spanning two segments: the coastal-lifestyle Salt Life brand (28 company-owned retail stores concentrated along Florida's coastline) and the Delta Group activewear platform, together employing roughly 586 workers at filing. Delta Apparel held a 60% interest in Salt Life Beverage, with Skull & Barrel, LLC owning the balance, and parent shares traded on the NYSE American (ticker: DLA) until delisting on July 1, 2024. Per the first-day declaration of Chief Restructuring Officer J. Tim PrubanDkt. 11, net sales fell from $110.3 million in fiscal 2023 to $78.9 million in the second quarter of fiscal 2024, while gross margins compressed from 14.7% to 4.3% under pressure from weakening consumer demand, elevated inventory, raw-material cost constraints, and post-pandemic apparel-sector volatility. By the petition date, $80.4 million was outstanding under a Wells Fargo-administered senior ABL facility secured by substantially all of the debtors' assets. Pre-filing cost actions included the June 13, 2024 shutdown of the DTG2Go operation and a June 6, 2024 furlough of approximately 2,413 employees at the Honduras manufacturing site, and the cases opened with standard first-day relief such as utility-service continuation proceduresDkt. 6 following the .
The restructuring effort initially pursued a §363 sale process coupled with a liquidating plan. On December 23, 2024, the debtors and the Official Committee of Unsecured Creditors jointly filed a combined disclosure statement and Chapter 11 plan of liquidation, together with a motion seeking conditional disclosure-statement approval, solicitation procedures, and a combined confirmation hearing. That plan was withdrawn by docket notice filed March 3, 2025, and on April 2, 2025, the cases converted to Chapter 7, ending the negotiated plan track and shifting estate administration to a Chapter 7 trustee. With no pending plan or scheduled hearings, the case now turns on trustee-administered liquidation of remaining estate assets against a claims docket of roughly $118 million—$85 million secured and $33.2 million unsecured across eleven filed claims.
