Quarterly report pursuant to Section 13 or 15(d)

Debt

Debt	3 Months Ended
Debt	Dec. 31, 2022
Debt [Abstract]
Debt	Note F—Debt Credit Facility On May 10, 2016, we entered into a Fifth Amended and Restated Credit Agreement (as further amended, the “Amended Credit Agreement”) with Wells Fargo Bank, National Association (“Wells Fargo”), as Administrative Agent, the Sole Lead Arranger and the Sole Book Runner, and the financial institutions named therein as Lenders, which are Wells Fargo, PNC Bank, and Regions Bank. Our subsidiaries M.J. Soffe, LLC, Culver City Clothing Company, Salt Life, LLC, and DTG2Go, LLC (collectively, the "Borrowers"), are co-borrowers under the Amended Credit Agreement. The Borrowers entered into amendments to the Amended Credit Agreement with Wells Fargo and the other lenders on November 27, 2017, March 9, 2018, October 8, 2018, November 19, 2019, April 27, 2020, and August 28, 2020. On June 2, 2022, the Borrowers entered into a Seventh Amendment to the Fifth Amended and Restated Credit Agreement with Wells Fargo Bank (the “Agent”) and the other lenders set forth therein (the “Seventh Amendment”). The Seventh Amendment, (i) removes LIBOR based borrowing and utilizes SOFR (Secured Overnight Financing Rate) as the primary pricing structure, (ii) amends the pricing structure based on SOFR plus a CSA (Credit Spread Adjustment) defined as 10 bps for 1 month and 15 bps for 3-month tenors, (iii) sets the SOFR floor to 0 bps, (iv) reloads the fair market value of real estate and intellectual property within the borrowing base calculation and resets their respective amortization schedules, (v) sets the maturity date to 5 years from the closing date, and (vi) updates the requirement for our Fixed Charge Coverage Ratio (“FCCR”) for the preceding 12-month period must not be less than 1.0 (previously 1.1 ). The Amended Credit Agreement allows us to borrow up to $ 170 million (subject to borrowing base limitations), including a maximum of $ 25 million in letters of credit. Provided that no event of default exists, we have the option to increase the maximum credit to $ 200 million (subject to borrowing base limitations), conditioned upon the Administrative Agent's ability to secure additional commitments and customary closing conditions. The Amended Credit Agreement contains a subjective acceleration clause and a “springing” lockbox arrangement (as defined in ASC 470, Debt ("ASC 470")) whereby remittances from customers will be forwarded to our general bank account and will not reduce the outstanding debt until and unless a specified event or an event of default occurs. We classify borrowings under the Amended Credit Agreement as long-term debt with consideration of current maturities. As of December 2022, we had $ 142.3 million outstanding under our U.S. revolving credit facility at an average interest rate of 6.7 %. Our cash on hand combined with the availability under the U.S. credit facility totaled $ 27.2 million. At December 2022 and September 2022, there was $ 23.1 million and $ 24.9 million, respectively, of retained earnings free of restrictions to make cash dividends or stock repurchases. See Note P—Subsequent Events for a discussion of the Eighth and Ninth Amendments to the Fifth Amended and Restated Credit Agreement entered into on January 3, 2023, and February 3, 2023, respectively. Honduran Debt Since March 2011, we have entered into term loans and a revolving credit facility with Banco Ficohsa, a Honduran bank, to finance investments in both the operations and capital expansion of our Honduran facilities. In December 2020, we entered into a new term loan and revolving credit facility with Banco Ficohsa, both with five - year terms, and simultaneously settled the prior term loans and revolving credit facility with outstanding balances at the time of settlement of $ 1.1 million and $ 9.5 million, respectively. Additionally, in May 2022, we entered into a new term loan with a five -year term with a principal amount of $ 3.7 million. These loans are secured by a first- priority lien on the assets of our Honduran operations and are not guaranteed by our U.S. entities. These loans are denominated in U.S. dollars, and the carrying value of the debt approximates its fair value. As the revolving credit facility permits us to re-borrow funds up to the amount repaid, subject to certain objective covenants, and we intend to re-borrow funds, subject to those covenants, the amounts borrowed are classified as long-term debt. El Salvador Debt In September 2022, we entered into a new term loan with a five -year term with a principal amount of $ 3.0 million with Banco Ficohsa, a Panamanian bank, to finance investments in our El Salvador operations. This loan is secured by a first-priority lien on the assets of our El Salvador operations and is not guaranteed by our U.S. entities. The loan is denominated in U.S. dollars, and the carrying value of the debt approximates its fair value. Information about this loan and the outstanding balance as of December 2022 is listed as part of the long-term debt schedule above. Additional information about these loans and the outstanding balances as of December 2022 is as follows (in thousands): December 2022 Revolving credit facility with Banco Ficohsa, a Honduran bank, interest at 7.25 %, due August 2025 $ 3,083 Term loan with Banco Ficohsa, a Honduran bank, interest at 7.5 %, quarterly installments which began September 2021 and are due through December 2025 6,086 Term loan with Banco Ficohsa, a Honduran bank, interest at 7.5 %, quarterly installments beginning March 2023 through May 2027 3,656 Term loan with Banco Ficohsa, a Panamanian bank, interest at the prevailing market rate within the Panamanian Banking Market, monthly installments which began October 2022 and are due through August 2027 2,878