The company, which has $244.5 million in total debt, attributed its financial troubles to a rise in cotton prices and other raw materials, and diminished demand for its products, according to the petition.
The company said it could complete multiple deals for its brands and has already struck an agreement to sell its Salt Life brand to Forager Capital Management for roughly $28 million. The offer is in the form of a stalking horse bid.
The firm will continue operating normally while being under court protection and has lined up Chapter 11 financing with Wells Fargo Bank and its other existing lenders.
ALCHEMPro News Desk (DS)
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