Pacific Brands Limited (ASX: PBG), the maker of Bonds undies and socks, as well as Sheridan sheets could be about to sell its iconic footwear brand.
Fairfax Media is reporting that the company has received informal offers for assets including Volley and Grosby shoes, part of the Brand Collective division, which also includes licensed brands such as Clarks and Hush Puppies.
CEO David Bortolussi refused to confirm or deny the offers, saying, “We’ll re-evaluate all parts of the portfolio.”
Pac Brands has already signed a deal to offload its workwear range of clothing, including brands King Gee, Hard Yakka and Stubbies to conglomerate Wesfarmers Ltd (ASX: WES), and Pac Brands may sell off more assets to concentrate on fewer brands, such as Bonds, Sheridan, Berlei and Tontine.
The company has struggled in recent times against massive competition from private label brands and cheap imports, while trying to dramatically slash its production costs.
The Brand Collective division is estimated to be worth around $20 million – given its sales of around $200 million last year. Should a sale eventuate, Volley will join the ranks of the likes of Speedo, Arnott’s, R.M. Williams, Tooheys and Golden Circle, as Aussie brands now owned by foreign companies.
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