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Published
Apr 4, 2017
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Delta Apparel sells Junkfood Clothing t-shirt business for $28 million

Published
Apr 4, 2017

Delta Apparel last week confirmed the sale of Junkfood Clothing Company, a vintage-inspired, licensed graphic t-shirt business, to JMJD Ventures for $28 million.


Junkfood Clothing, the Los Angeles-based vintage-inspired t-shirt brand


The sale, which includes $25 million in cash at closing, is expected to lower Delta's debt levels, as well as continue the company’s share repurchase program and provide capital for further investments such as the Salt Life and Art Gun businesses.

Delta Chairman and CEO Robert Humphreys considers 2017 to be a growth year for the company. He said in February that the virtual inventory model of its Art Gun business, which posted record revenue in February, and e-commerce will drive significant growth for the company. Delta also posted a 5.4% decline in sales in February.

“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,” Robert W. Humphreys Chairman and Chief Executive Officer of Delta Apparel. “We are pleased to have the opportunity to sell Junk Food and further reduce our reliance on licensed properties.”

Launched in 1998, Junkfood Clothing holds the distribution rights to over 800 pop culture brands across multiple categories, including rock & roll, characters, movies, sports, and foods. The Los Angeles-based company brand is carried at over 4,500 global stores and it more than doubled its revenue since it was acquired by Delta in 2005.  

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