Logistics provider Toll has extended its Garment On Hanger service, following industry consultation.

Toll was set to wind down the dispatch service in June, but is currently working with the industry to create a viable solution.

It will continue to provide the current service while it works with customers on a consultative basis, the company confirmed.

The move follows concerns from brands and retailers which rely on the service to protect and dispatch quality constructed goods.

Toll is the chief provider of the service on a national scale.

However the cost of the service far exceeds the returns, requiring significant price increases to continue.

It is understood logistics service Fashion Movers is the only provider to offer a comparable solution, however only in capital cities such as Sydney and Melbourne.

TNT was the last major provider to exit the hanging goods service in 2014/15.

A Toll spokesperson said the logistics provider is trialling a new prototype garment on hanger boxes with some customers.

“We are committed to providing innovative solutions to support our retail customers grow.

"However, the reality is that the current pricing model for the Garment on Hanger service simply does not reflect the operational complexity and cost to provide this highly customised service.

"We are working closely with our customers on new solutions, including trialling a new garment on hanger box service that is receiving positive feedback from customers as it offers much improved garment protection.”

Other options Toll can provide for retailers include hanging box distribution or carton freight, which does not require specific infrastructure to deliver.

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