26 Aug 2014

Pacific Brands posts $A224.5m loss

7:22 pm on 26 August 2014

Pacific Brands has posted a $A224.5 million annual loss a month after its last managing director left the company after a disagreement with the board.

The company says it has now appointed the chief financial officer since 2009, David Bortolussi, to the top job which the chair, Peter Bush had been nursing in the interim.

Mr Bortolussi will be the company's third chief executive in two years.

Mr Bortolussi replaces John Pollaers who had replaced Sue Morphet in September 2012.

The company, which owns the Jockey, Bonds, Sheridan, Hush Puppies and Clarkes brands, made a $74 million net profit in the previous year ended June.

This year's loss reflects write-downs in the value of its brands, primarily of its work wear brands such as Hard Yakka and KingGee.

The company has now sold the work wear division to Wesfarmers for gross proceeds of $180 million in cash, although that is subject to regulator approval.

Mr Bortolussi said the written-down value of the division was $140 million so it expects to recognise a $35 million profit on the sale in the current year.

Mr Bortolussi said the sale would simplify and focus the company's strategy to maximise the potential of its remaining leading brands.