You know it’s not going to be good when the chairman of the company starts his address to the annual general meeting with:
“I wish I were here saying that there had been a miraculous bounce back in consumer confidence and that retail was roaring again. It simply isn’t. And while we have been taking all practical steps to engineer better performance from your business, we still have some way to go.”
Pacific Brands, whose labels include Bonds and Sheridan, has announced it is selling its work wear division to Wesfarmers for $180 million after suffering a $224 million full year loss.
Chairman Peter Bush didn’t make FY15 sounds any prettier, “F15 will remain challenging, with variable market conditions likely to be unchanged. We will continue to work to reduce costs and improve performance.”
The company’s net debt increased by $90 million to $249.1 million and subsequently the retailer did not report a final dividend.
Here’s the strategic response newly appointed CEO David Bortolussi has put in place to get Pac Brands back on it’s feet.
The company expects to earn a profit on the sale of the workwear segment of approximately $35m in FY15 (no tax effect).
See the Pacific Brands full AGM presentation here.
Now Read: Pacific Brands Is Getting A New CEO And Selling Its Work Wear Business
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