SYDNEY — Pacific Brands shares surged more than five percent on Tuesday on news the company is moving out of footwear and sporting goods to focus on its core intimate apparel and bedding businesses.
The Richmond, Victoria-based manufacturer said it will sell its lossmaking Brand Collective business for 39 million Australian dollars or $34 million. Three deals will distribute the unit’s various assets.
The footwear division – which includes the iconic 75 year-old sports shoe brand Volley and local rights to Clarks, Hush Puppies, Mossimo and Superdry – is being sold to Australian private equity firm Anchorage Capital Partners.
The Australian arms of Dunlop and Slazenger will be sold to IBML, a division of UK-based Sports Direct International Plc.
Sporting assets will be sold to Designworks, a division of The PAS Group, which will license the Dunlop, Slazenger and Everlast brands from IBML.
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In August, Pacific Brands sold its workwear division to Wesfarmers Ltd for 180 million Australian dollars or $168 million at average exchange, after posting a full year net loss of $224.5 million for the twelve months to June 30, or $211 million at average fiscal 2014 exchange.
The company’s shares closed up 2.5cents or 5.05 percent at 52 Australian cents or $0.46.