Pacific Brands jettisons Brand Collective division

Pacific
Brands has split up and sold its loss-making Brand Collective division to three
different buyers for a total of $39 million.

As
was reported in The Australian Financial Review and later confirmed by Pacific on Monday, the company had been in talks regarding the sale of Brand
Collective.

The
division lost $22.3 million pre-tax last financial year, notes The Australian,
who described the divestment as the assets being “jettisoned” to the relief of
shareholders.

“The sale …
is consistent with our strategy to simplify and focus Pacific Brands on
maximising the potential of our market leading brands such as Bonds and
Sheriden,” said Pacific Brands CEO David Bortolussi in a statement.

Among
the brands being sold is the iconic Volley shoes, which are strongly linked to
the history of Australian tennis.

The ABC reports that Volley was developed here 75 years ago by Adrian Quist, a
tennis star and Dunlop employee, and the shoes have been worn by Australian
tennis champions including Rod Laver and Evonne Goolagong Cawley.

Volley
was bought by Pacific in 2004 and has been sold to local firm Anchorage Capital
Partners, along with footwear brands Julius Marlow and Grosby and two textile
brands.

The
Australian Dunlop and Slazenger businesses were sold to the UK’s IBML, which
controls these brands in other markets.

PAS
Group has acquired Pacific’s sports assets.

“We are a public company and if
anyone has an interest in the total company the board and myself have a
fiduciary duty to consider any approaches,” Bortolussi told Fairfax.

“It leaves us with a very strong balance
sheet, which is not a bad position to be in.”

The announcement follows the company’s announcement in August that it would sell its workwear division to Wesfarmers for $180 million.

Image: ebay.com.au