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Delta Apparel sells Junk Food Clothing Company

By Danielle Wightman-Stone

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Business

Delta Apparel has confirmed the competition of its sale of vintage-inspired, licensed graphics T-shirt business, Junk Food Clothing Company to JMJD Ventures for 28 million dollars.

The asset sale includes 25 million dollars in cash at closing, with promissory note payments due between June 30, 2017, and March 30, 2018, for the remaining amount. The transaction does not include the sale of accounts receivable and certain other assets, or the assumption of trade payable and certain other liabilities.

The 35 million dollars total value of the company sold represents about 80 percent of Junk Food’s revenue, Delta Apparel stated in a press statement.

“The Junk Food brand has broadened its consumer reach and awareness, and more than doubled its revenue since we acquired it in 2005,” said Robert Humphreys, chairman and chief executive of Delta Apparel. “While we have enjoyed nurturing this brand over the years, the changing retail environment has made it more challenging to be a niche player in the licensed-graphics space.”

Delta Apparel is expected to use the proceeds from the sale to lower its debt levels, and assist it in continuing its share repurchase programme, as well as to provide capital for further investments in “strategic growth opportunities”, such as the Salt Life brand and virtual art studio Art Gun.

Junk Food Clothing was launched in 1998 by designers Natalie Grof and Blaine Halvorson, it holds distribution rights to pop culture brands across multiple categories, including music, movies, sports, and foods including Disney, My Little Pony, DC Comics, Star Wars, and WWE.

Image: Junk Food Clothing Facebook

Delta Apparel
jmjd ventures
junk food clothing company