Delta Apparel Inc. Acquires Junkfood Clothing
Los Angeles–based apparel manufacturer Liquid Blaino Designs, which does business as Junkfood Clothing, was acquired in August by Atlanta-based Delta Apparel Inc.
Natalie Grof and Blaine Halverson launched Junkfood Clothing in 1998 and found success with a nostalgic T-shirt line that featured images of classic board games and toys such as Candy Land and My Little Pony.
Junkfood received a payment of $22.5 million upfront from Delta, said Frederick Schmitt, a representative of The Sage Group, a Los Angeles–based investment bank that acted as Junkfood’s financial advisor for the transaction. Additional payments will be made under undisclosed circumstances, he said.
“The purchase of Junkfood keeps with our strategy of acquiring profitable apparel operations that expand our channels of distribution,” said Robert W. Humphreys, president and chief executive officer of the publicly traded company.
Junkfood, which manufactured the line of Looney Tunes T-shirts designed by Los Angeles retailer Tracey Ross, approached Delta and solicited its interest, said Schmitt. “We are excited to be teaming with Delta Apparel,” Grof said in a statement. “This will give us the resources to build our infrastructure to support our growth.”
Under the terms of the acquisition, Grof, Halverson and their management team will continue to manage Junkfood from its current location in Los Angeles. —Erin Barajas
