Delta Apparel CEO Resigns; Chief Restructuring Officer Named
Delta Apparel’s Chief Executive Officer and Board Chair Robert W. Humphreys submitted his resignation, effective June 29, 2024, following a request by the company’s independent directors. Humphreys has been with the Duluth, Georgia-based company since 1998, when he took the role as CEO.
While a CEO replacement was not named, a May 16 filing with the Securities and Exchange Commission (SEC) states:
“The company has appointed Tim Pruban with Focus Management Group as its chief restructuring officer. Mr. Pruban will be advising the board on succession planning in regards to Mr. Humphreys’ departure.”
The news comes two days after additional board member changes and just over a week after the company released its Q2 fiscal report.
According to a separate SEC filing, A. Alexander Taylor II resigned from Delta Apparel’s board and all subcommittees, effective May 14. On May 16, the board reassigned Anita D. Britt from the Audit Committee of the Board to the Corporate Governance Committee of the Board and appointed her to serve as chair of the Corporate Governance Committee.
The apparel manufacturer’s Q2 report revealed that its net sales were down: $78.9 million in Q2 2024 compared to last year’s $110.3 million at this time. Net sales for its Salt Life retail segment were at $15.5 million compared to the previous year’s $18.9 million.
“Net sales in the Delta Group segment were $63.4 million compared to $91.3 million in the prior year period,” a press release states.
The Q2 2024 report also notes net inventory as of March 30, 2024, was $156.9 million, a year-over-year decrease of 35% from inventory of $243.2 million in March 2023. Capital spending also decreased, sitting at $200,000 in the second quarter compared to $2 million during the prior year Q2.
Earlier this year, Humphreys shared insight into the company’s cost-saving efforts and declining interest in the Activewear segment, along with inventory pressures. In February, the company said it was focused on reducing working capital and managing costs effectively, according to Investing.com.
