Salt Life to Close Retail Stores Following Bankruptcy Auction

Dozens of Salt Life retail stores across the country are closing following the company's recent purchase. Hilco Consumer-Retail Group, one of the new owners of the brand, announced Tuesday that it will be closing all 28 retail locations. Liquidation is underway as new ownership plans to restructure the fashion company and lay out a plan for the future of the brand. Hilco, together with Iconix International, jointly purchased the Salt Life apparel line after previous owner Delta Apparel Inc. filed Chapter 11 bankruptcy in June.

Total Retail's Take: The lifestyle, restaurant and clothing brand founded in 2003 in Jacksonville Beach, Florida, has been challenged over the past two years by the financial difficulties of its parent company, Delta Apparel. That led Salt Life to scale back its operations. Those issues, include declining liquidity and demand, were outlined by Chief Restructuring Officer J. Tim Pruban in court documents. Salt Life's new owners plan to transition the business to a greater focus on e-commerce and wholesale. Temporary cost savings achieved by the sale of its retail stores may be offset however by a decline in revenue.