Pacific Brands confirmed a report that it is in talks to sell its Brand Collective business, which includes rights to the Dunlop, Slazenger and Everlast sports brands.
The Melbourne, Australia-based brand management company said it had not reached an agreement and that an announcement will be made by the company if and when an agreement is reached.
The Brand Collective business lost AUD$22.3 million ($20 mm) in the fiscal year ended June 30, 2014 on sales of AUD$204.5 million ($188 mm) down 7.9 percent from fiscal 2013. The company’s 2014 annual report shows Dunlop, Slazenger, Everlast, Grosby, Harrison and Freshjive accounted for 28 percent of those sales, or AUD$57 million ($52 mm).
Pacific Brands earlier this year sold its Workwear business for AUD$180 million, or less than half fiscal 2014 sales, after taking a AUD$242.3 million ($222 mm) impairment of goodwill charge at the business. The transaction was part of a turnaround plan the company unveiled in June that called for a moratorium on dividend payments, refocusing investment on its core Bonds underwear and Sheridan bedding brands and a rationalization of the company’s brand portfolio that is ongoing.