Pacific Brands may sell shoe division
Bonds’ underwear owner Pacific Brands is in talks to sell off its shoes and licensed brands division.
Pacific Brands has confirmed it is in discussions to sell its Brand Collective division, which owns the Volley and Hush Puppies labels, among others, and holds licences for clothing brands including Superdry and Mossimo.
“The company confirms that it is in discussions regarding a potential sale of its Brand Collective business,” Pacific Brands said in a statement today.
“However, a transaction has not been agreed.”
The company has been looking to sell off assets to reduce costs and allow Pacific Brands to focus on its flagship Bonds and Sheridan divisions.
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It’s already announced the $180 million sale of its workwear division, which includes the Hard Yakka, KingGee and Stubbies brands.
Pacific Brands suffered a $224 million loss during the 2013/14 financial year after competition hurt profit margins.
Chief executive David Bortolussi told the company’s annual general meeting in October that challenging conditions continued.
“Consumer, trade and currency market conditions continue to be difficult,” he said.
“And, while we have been taking all practical steps to engineer better performance from your business, we still have some way to go.”
