Clothing manufacturer Pacific Brands is to sell off its workwear brands to Wesfarmers after suffering a loss of more than a $224 million. The company, which makes socks and underwear brand Bonds and Sheridan sheets recorded a net loss of $224.5 million for the year to June 30, in comparison to the $73.8 million profit in the 2012/2013 period.
Finance chief David Bortolussi has been promoted to CEO, replacing John Pollaers, who left the company in July. Market conditions look to remain challenging for the 2014/2015 period as competition continues to hurt profit margins, warned Pacific.
Bortolussi said the sale of its workwear brands would allow the company to focus on the performance of Bonds and Sheridan.
“It also reduces exposure to the challenging industrial market, and restores balance sheet strength to the company,” continued Bortolussi.
Pacific will not pay a final dividend to shareholders.