Pacific Brands in sale talks

 

1365365_92370903 Pacific Brands has confirmed that is in talks to sell its shoe and licensed division, Brand Collective.

In a statement, Pacific Brands confirmed it was in discussions regarding a potential sale, however, stated a transaction had not been agreed and that an announcement will be made by the company if and when an agreement is reached.

The Brand Collective division includes Volley, Hush Puppies, Julius Marlow, Clarks, and Grosby shoes, and holds licenses for clothing labels Superdry and Mossimo.

In August, Pacific Brands offloaded its workwear division, which included the Hard Yakka, KingGee and Stubbies brands, to Wesfarmers for $180 million.

The group suffered a $224 million loss during the 2013/14 financial year after competition hurt profit margins.

Pacific Brands CEO, 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.”

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