Salt Life, the prominent outdoor lifestyle brand, has initiated the closure of all its retail locations following substantial liquidation sales that began Sept. 20. The decision affects 28 stores across 10 states and follows the company’s Chapter 11 bankruptcy filing on June 30, according to USA Today.
The brand’s revamping comes after its recent acquisition by Iconix International Inc. and Hilco Consumer-Retail Group through a competitive bankruptcy auction, with a purchase price of $38.74 million. The new ownership plans to redirect the company’s focus toward wholesale and e-commerce operations. “Hilco will support Iconix in transitioning the Salt Life brand towards a stronger focus on wholesale and e-commerce business model,” according to the company’s announcement, per the outlet.
Videos by PopCulture.com
Established in 2003 by four watermen from Jacksonville Beach, Florida, Salt Life built its reputation on providing “everything you need to gear up for a day, a week, or a lifetime pursuing an active watermen’s lifestyle.” The brand’s website states it was “more than just a logo; it represents a passion for the ocean, the salt air, and most importantly, a way of life.” The company began with a simple tattoo design that two surfers got following “a shared moment of appreciation for what they called ‘the salt life,’” which was later recreated as a decal for T-shirts and hats, Retail Dive reports.
The closures affect stores across multiple states, including 15 locations in Florida (Boca Raton, Daytona Beach, Destin, Estero, Fort Lauderdale, Jacksonville Beach, Jupiter, Key West, Lutz, Orlando, Palm Beach Gardens, Pembroke Pines, Pompano Beach, Sarasota, and St. Augustine). Additional closures include three stores in South Carolina (Bluffton, Charleston, Myrtle Beach), two in California (Huntington Beach, San Clemente), two in New York (Deer Park, Riverhead), and single locations in Virginia (Williamsburg), Texas (Texas City), New Jersey (Long Branch), Georgia (Columbus), Delaware (Rehoboth Beach), and Alabama (Foley).
Current liquidation sales offer customers discounts of up to 40% on merchandise, including tees, shorts, performance clothing, hoodies, and tumblers. Store fixtures and equipment are also available at reduced prices. Customers holding gift cards were told to use them by Oct. 20, as they wouldn’t be accepted after this date.
The closure announcement follows significant financial difficulties experienced by parent company Delta Apparel Inc. Court documents reveal the company reported $337.8 million in assets and $244.6 million in debts, with its top five creditors owed over $29 million collectively. Recent challenges included declining liquidity and demand, alongside increased cotton prices in 2022 that forced production adjustments, per Retail Dive.
According to Chief Restructuring Officer J. Tim Pruban in court documents, the company attempted to reduce costs by sourcing lower-cost cotton and reducing production, resulting in approximately $15 million in severance obligations. The company had hoped to absorb these costs in 2023 but couldn’t due to diminished demand.
While the retail locations are closing, the Salt Life brand will continue operations through wholesale and online channels. The Salt Life Food Shack restaurants in North Florida operate independently and remain unaffected by these changes.
Delta Apparel’s financial struggles were evident in its recent performance, with net sales dropping to $78.9 million in the second quarter of fiscal year 2024, compared to $110.3 million in 2023. The company’s Q2 gross margin fell to 4.3% from 14.7% in the prior year, according to the outlet. The company reported a $33.2 million net loss for its 2023 fiscal year, leading to the resignation of CEO Robert Humphreys just before the bankruptcy filing.
