Pacific Brands is implementing a new strategy – Pacific Brands 2010 – to restructure and sharpen the focus of the business. The company will discontinue some of its smaller labels and brands to reduce complexity and cost and divest some non-core businesses and facilities, some as going concerns.
These changes will necessitate 1,850 job losses in Australia over an 18-month period including 1,200 in clothing manufacturing. For the fiscal first half, Pacific Brands results for continuing operations saw a slight improvement in net profit despite a decline in net sales. Net sales slipped 2.9% to A$1.04 billion ($81.49 mm) as net profit was just below flat, down 0.1% to A$57.6 million ($45.1 mm).
