Pacific Brands of Australia said that after five months, talks with suitors are over and it now appears unlikely the apparel and footwear company will not be acquired.


Based in Melbourne, Pacific Brands has operations throughout Australia, New Zealand, United Kingdom, Malaysia, China and Indonesia. In fiscal 2011, the company  generated sales of over  $1.58 billion of more than a dozen apparel, footwear and home brands, including Dunlop, Everlast, Slazenger and Volley . The company makes in excess of 300,000 different products and sells over 200 million units per year.


On Tuesday, Pacific Brands also reiterated its outlook for the last half of fiscal 2012. In February, the company estimated earnings before income taxes and net profit after tax would both be materially down and sales would decline due to continuing weak retail conditions and changes to its customer base. 


For the 2012 financial year (F12), EBIT before significant items is expected to be in the range of $125-130 million.


The company continues to focus on improving the long term competitiveness of its business, including:


  • Further investment in its key brands and in the business-to-business and direct-to-consumer channels, including the recent launch of Berlei online, opening the first Bonds retail store, and expanding the Sheridan boutique store network
  • The on-going review and rationalisation of the company’s brand portfolio
  • A sustained focus on reducing costs of doing business which will enable the company to mitigate risks, offset inflationary pressures and fund investment in the direct-to-consumer channel.

As stated in connection with the F12 half year results release, the company expects:



  •  cash restructuring expenses included within significant items to exceed previous guidance of $23 million (pre tax) due mainly to additional distribution centre consolidation and operational restructuring.
  • Cash restructuring expenses for F12 are expected to increase to approximately $32 million (pre-tax).


Due to the transformation and restructuring work completed, the company remains well placed to deal with the challenges ahead of it and then to benefit from any improvement in market conditions.