Update June 19: According to a regulatory filing, Delta Apparel shares that its board of directors approved a plan to exit its DTG2Go business unit. The move will lead to around 115 employees being laid off. The decision follows the company’s announcement that it will take an impairment charge related to DTG2Go in its third quarter (ended July 2). Delta states that was due to DTG2Go’s largest customer indicated earlier this year that it no longer intends to source production from the platform.

As part of the DTG2Go Exit Plan, Delta announced that it ceased production operations related to all DTG2Go manufacturing effective June 13, in a report shared by SGB Media. The company will permanently close its DTG2Go facility in Storm Lake, Iowa, in addition to its printing facilities within distribution centers devoted to the Delta Group operating segment in Cranbury, New Jersey; Fayetteville, North Carolina; Phoenix; LaVergne, Tennessee; and Miami.

The company expects to implement the DTG2Go Exit Plan substantially within 120 days.

According to a June 17 report, Delta Apparel has committed to suspending its Honduras manufacturing operations “due to ongoing liquidity challenges,” an SEC filing states. This plan goes along with the company’s decision to wind down its operations in Mexico earlier this year. “The company continues to seek to sell its El Salvador manufacturing operations servicing that channel, as previously disclosed,” the filing reads.

Shuttering the Honduras facility could impact as many as 2,400 employees. As the suspension takes place over the next 120 days, Delta says it will explore “strategic initiatives involving its offshore manufacturing operations, which may include a sale or a permanent wind-down of all such operations.”

As previously reported in the company’s Form 10-Q filed with the SEC on May 9, it has been focused on assessing its strategies and managing working capital and costs amid market, operational, and liquidity challenges.

Duluth, Georgia-based Delta Apparel is facing another set of organizational changes as two leaders resign from the company and a $23.5 million real estate agreement terminates. Filings with the United States Securities and Exchange Commission share the latest details.

On June 6, Elkay Partners, NY terminated its real estate purchase and sale contract with Delta Apparel, dated Feb. 24, 2024, for the sale and 10-and-a-half-year leaseback of Delta’s roughly 35-acre campus in Fayetteville, North Carolina.

“The purchase price for the Fayetteville campus contained in the agreement was $23.5 million and the agreement contained customary representations, warranties, and covenants made by the Company,” states the SEC filing. “The obligations of the buyer under the agreement were subject to inspection, due diligence, and other customary closing conditions.”

Director Departures

In addition to the terminated real estate deal, on June 5 and June 6, respectively, Vice President and Chief Administration Officer Justin Grow and President of Delta Group Matthew Miller have resigned from the company. Originally set to resign on July 2, Grow amended the effective date to June 5. Miller’s resignation is effective immediately.

Both announcements come as Delta Apparel faces financial woes and an onslaught of resignations from its board of directors to its CEO Robert Humphreys. The apparel manufacturer’s Q2 2024 report revealed net sales were down — $78.9 million compared to Q2 2023’s $110.3 million.