Delta Apparel Inc., owner of beachwear brand Salt Life and activewear label Soffe, has filed bankruptcy intending to sell its assets.

On Monday, the publicly traded company said it could complete multiple deals for its apparel brands and has already struck an agreement to sell its Salt Life brand to Forager Capital Management LLC for roughly $28 million. The offer is in the form of a stalking horse bid, meaning it will set the floor price for the Salt Life brand and is also subject to better offers should any materialize in the coming weeks.

Delta Apparel filed Chapter 11 Sunday in Delaware, listing roughly $337.8 million in assets and $244.5 million in total debt, according to the company’s bankruptcy petition. An increase in cotton prices and other raw materials diminished demand for its products, contributing to its financial troubles, according to court papers. 

The firm said it will continue operating normally while it’s under court protection and has lined up Chapter 11 financing with Wells Fargo Bank and its other existing lenders. The amount of financing couldn’t immediately be learned.

The case is Delta Apparel Inc., number 24-11469, in the US Bankruptcy Court for the District of Delaware.