The dismembering of Pacific Brands (PBG) continues apace with the company yesterday confirming media reports that it is in talks to sell its shoes and licensed brands division.
Pacific Brands’ Brand Collective division owns the Volley, Grosby and Hush Puppies lines, and holds licences for clothing brands including Superdry and Mossimo.
It also operates the Shoe Warehouse and Shoe Superstore chains. The Stussy, Naturaliser and Diesel brands were sold last year.
“The company confirms that it is in discussions regarding a potential sale of its Brand Collective business,” Pacific Brands said in a statement to the ASX yesterday.
“However, a transaction has not been agreed,” the company said.
PBG 1Y – Pac Brands set to divest the iconic Volley
The company is selling unwanted assets to reduce debt and allow it to focus on its flagship Bonds and Sheridan divisions.
It’s already announced the $180 million sale of its workwear division, which includes the Hard Yakka, KingGee and Stubbies brands, to Wesfarmer’s industrial and safety products division.
Proceeds from the Brand Collective and Workwear sales will be used to reduce net debt, which stood at $249 million at the end of June.
The shares rose 2% to 49.5c.
