Delta Apparel Closing DTG2Go

June 21, 2024

Troubled blank-apparel manufacturer Delta Apparel has officially notified the Securities and Exchange Commission (SEC) that is closing its on-demand apparel print provider DTG2Go.

According to the company’s SEC filing, dated June 18, 2024, “The DTG2Go Exit Plan provides for a reduction of the company’s workforce by approximately 115 employees. In connection with the DTG2Go Exit Plan, the Company expects to permanently close its DTG2Go facility in Storm Lake, Iowa in addition to printing facilities within certain distribution centers devoted to the Delta Group operating segment located in Cranbury, New Jersey; Fayetteville, North Carolina; Phoenix, Arizona; LaVergne, Tennessee; and Miami, Florida.”

Delta Apparel Liquidity Problems

In the filing, Delta Apparel goes on to say, significant reductions in demand across certain of the company’s business units during fiscal year 2023 and the beginning of fiscal year 2024, has impacted the company’s operating results and financial position.

“The company’s deteriorating liquidity position, including its limited cash and cash equivalents and its inability to date to raise additional capital or otherwise obtain necessary liquidity to have sufficient resources to fund its operations…prevent it from purchasing all of the yarn, dyes, chemicals and other production inputs required to supply its manufacturing facilities and allow them to run at the levels required to meet its business plans,” the company says.

Honduran, Mexican Operations Shuttering

This most recent setback comes hard on the heels of multiple closings south of the border, including closure of its manufacturing operations in Honduras. Per its June 17 filing with the SEC, closure of Delta’s Honduras operations, “follows the wind-down of the company’s manufacturing operations in Mexico earlier this year, and the company’s strategic decision to no longer emphasize Delta Activewear’s Global Brands channel, as previously disclosed. The company continues to seek to sell its El Salvador manufacturing operations servicing that channel, as previously disclosed.”

In terms of its impact on the local workforce, Delta says, “The suspension of the company’s manufacturing operations in Honduras is expected to impact approximately 2,413 employees and is expected to remain in effect for at least 120 days as the company explores strategic initiatives involving its offshore manufacturing operations, which may include a sale or a permanent wind-down of all such operations.”