Bonds, News, Rio — February 18, 2012 at 8:00 am
Sponsered by Macy's

Stormy Weather for Pacific Brands

by

The Australian company, responsible for the Bonds, Rio and Slazenger underwear labels has posted a $362.4 million loss for the past two quarters, much higher than expected. They attribute this deficit to the fact that Kmart, with whom they had partnered to carry the popular Bonds brand chucked it overboard in favor of in-house brands, as well as “a material decline in the performance of the underwear business, [and] lower growth expectations.”

Already, takeover rumors are circling, with private equity giant Kohlberg Kravis Roberts appearing as a possible buyer. But despite heavy losses, shares of Pacific Brands were trading briskly, indicating that KKR’s offer reflected Pacific Brands’ sustained value.

Sue Mophet, Pacific Brands’ CEO, stated that “there is no certainty that any agreement will be reached with any party.” Despite the disappointing losses, Mophet maintained that underwear “remains our most profitable group in both absolute and relative terms. We are confident underwear will soon resume its growth trajectory.”

Tags
2 comments
  Livefyre
Newest | Oldest
undies collector
undies collector

I agree, bring Pacific Brands back to Oz & I know many people will start buying Bonds etc again. I stopped buying when Australian made was no longer available. Also stopped buying 2wink when I found they were made in China too.

Damian Greco
Damian Greco

Aussie underwear company 2wink Australia has some advice for Pacific Brands: bring manufacturing and production back to Australia!

As a result of the Pacific Brands’ half-yearly loss of more than $362.4 Million, smaller underwear brands are getting nervous at the prospects of where the market for men’s underwear might be headed. Especially since the retail giant K-Mart reportedly tossed out a multi-million dollar deal with the company.

“The market isn’t like it was 10 or 20 years ago when a few brands had the monopoly,” says Carl McNeill, co-owner of 2wink Australia. “Today’s consumers can, at a click of a button, search the Web for any one of the many new and exciting brand; most of which offer free shipping. Pacific Brands needs to return to making quality merchandise in Australia, become more interactive with their consumers on social media outlets and create a user-friendly online website that also offers free worldwide shipping.”

Trackbacks

  1. Aussie Brands Don’t Go Down Under Pac Brands’ Weight - The Underwear Expert says:
    March 21, 2012 at 1:02 pm

    [...] It’s always been somewhat of a mystery why Australia can boast of so many fine men’s underwear brands.  One possible explanation comes in the form of Aussie underwear giant Pacific Brands, whose financial troubles we recently reported. [...]

  2. Trouble Down Under - The Underwear Expert says:
    October 1, 2012 at 2:02 pm

    [...] previously reported on the financial issues plaguing Pacific Brands Limited, an Australian company marketing labels such asBonds, Everlast and Dunlop. Brought on by a net loss [...]