Pacific Brands announced it is selling its work wear division to Wesfarmers for $180 million after posting a $224.5 million full year loss.
Sales were up 3.8% to $1.322 billion for the year to June 30 with the clothing company doing well with its Bonds underwear, up 19.9%, and Sheridan sheets, up 15.6%, businesses.
The company expects challenging and variable market conditions to continue.
The net loss was driven by the impact of impairment charges and restructuring costs resulting from acceleration and expansion of performance improvement and cost cuts.
The company has agreed to sell its workwear division, which owns the Hard Yakka, KingGee and Stubbies brands, to Wesfarmers for $180 million.
David Bortolussi, the Chief Financial and Operating Officer since 2009, has been appointed CEO.
He says the company is now concentrating on balance sheet strength and investing in key brands Bonds and Sheridan.
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