News June 05, 2024
Two Delta Apparel Board Members Resign
The departures of Timothy Brog and David Whelan follow fast on the heels of former CEO Robert W. Humphreys’ exit from the ailing Top 40 firm.
The leadership shake up at struggling Top 40 supplier Delta Apparel (asi/49172) is continuing.
Following the late May forced resignation of former CEO Robert W. Humphreys, two members of the publicly traded apparel manufacturer’s board of directors have now quit their posts, according to a June 4 filing with the Securities and Exchange Commission.
Timothy Brog resigned on May 30, while David Whalen called it a day at Delta Apparel on May 31. Both departures were effective immediately.
Brog had been a director since late 2023, when Delta Apparel reportedly agreed to appoint him to avoid a proxy fight with investor Forager Capital Management, an Alabama-based hedge fund management firm.
Brog’s background includes being a past president, CEO and director at Rubicon Technology, an advanced materials provider specializing in monocrystalline sapphire for applications in optical and industrial systems.
Whalen had been a director since 2017. His career experience includes having formerly been president and CEO of A.T. Cross Company (asi/47520), which manufactures and markets writing instruments and personal accessories under the Cross brand name.
As Humphreys’ longtime tenure at Delta Apparel ended, the company appointed Tim Pruban to serve as chief restructuring officer; a new CEO was not named.
Filing for bankruptcy and a potential sale of Delta Apparel’s popular retail brand Salt Life are reportedly among the options on the table for the hemorrhaging supplier. Pruban’s expertise includes business restructuring, asset recovery, liquidation management and asset sales.
Delta Apparel’s financial results of late have been dismal.
In May, the firm reported that its fiscal half-year total company revenue was about $158.9 million – a 27% year-over-year decrease. For the six-month period, Delta Apparel suffered a loss of about $44.8 million, or -$6.38 per share.
In the 2023 fiscal year, which ended Sept. 30, Delta Apparel had a $33.2 million annual loss and sales fell 14%. Based on estimated 2022 North American promotional products revenue of $49.6 million, Delta Apparel ranked 37th on Counselor’s most recent list of the largest suppliers in the industry. The new list is due out this summer.