Delta Apparel, a Greenville based apparel specialist, has announced plans to consolidate fabric production for basic, blank tee shirts from Maiden, NC, to its Ceiba Textiles facility in Honduras.

According to the company, the move will affect 70 employees, and the company projects annual savings of $1.1 million as it continues to operate with about 190 employees in Maiden.

Delta Apparel is expecting the consolidation to boost production at the Ceiba Textile facility by about 8%, or 900,000 pounds of fabric per week.

Reducing US fabric production

“The change shifts fabric production for blank tees to the company's most cost-effective facilities and is expected to shorten the production cycle by approximately 10 days,” the company reported.

“In addition, the company is further reducing US fabric production in order to better align inventory levels with sales expectations. Total fabric production at the Maiden facility will decrease by approximately 35%.”

Delta Apparel designs and manufactures clothing under a variety of brand names. Operating subsidiaries include M. J. Soffe LLC, Junkfood Clothing Co. and Art Gun LLC.

Economic decision

Delta Chairman and CEO Bob Humphreys said these kinds of decisions are always difficult. However, the company can no longer justify the additional cost associated with its current level of domestic fabric production for the highly competitive blank T-shirt business.

He said: “We believe this economic decision is in the best long-term interest of Delta Apparel and our shareholders.”

Employees in Maiden will continue producing fabric to support the company’s USA made marketed goods and private-label products, as well as the company’s sewing operations in Mexico.

Delta Apparel

Delta Apparel specialises in the design, merchandising, sales, and marketing of a variety of lifestyle branded activewear, apparel, and headwear for men, women, juniors, youth and children.

Delta became an independent public company in July 2000, when the business was solely based on the sale of unembellished basic tees.

Since then, the company has become a diversified branded apparel manufacturer through the completion of seven acquisitions, which added well-recognised brands and licensed properties to its portfolio.

www.deltaapparelinc.com