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We 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 of $132 million in 2010/11, Pacific Brands was nearly bought out by US-based private equity firm Kohlberg Kravis Roberts back in January. That deal fell through, however, and now it would seem for Aussie business, the hits just keep on coming.
Businessweek reports that Australian retail sales have unexpectedly dropped recently, with a 1% decrease in department store sales. In response, Pacific Brand’s stock, having bounced back from it’s February dip, has once again gone down under and returned to it’s former troubled levels. Spokespersons for the company now say that buyout prospects seem dim.
“The board of Pacific Brands has concluded that a definitive proposal for the acquisition of the entire issued capital of the company is unlikely to be forthcoming in the near term,” the company said in a statement.
The company sources further state that they intend to reduce costs and sell off some of their unwanted brands to stay afloat. As to which brands they’ll sell off, and as to the future of Pacific, only time will tell.