The parent company of Kmart and Target is set to make an acquisition, following a competitor's $224 million loss.
Pacific Brands will sell off its workwear portfolio to Westfarmers after suffering more than $224 million in losses.
Pacific Brands made a net loss of $224.5 million for the year to June 30, compared to a $73.8 million profit in 2012/13.
Wesfarmers has acquired its workwear division, which includes Hard Yakka and KingGee, for $180 million.
As part of the fallout, Pacific Brands has also promoted its chief financial officer David Bortolussi to CEO.
Bortolussi will replace John Pollaers, who left the company in July amid boardroom disputes over its future direction.
Pacific Brands warned market conditions would remain challenging in 2014/15 in the face of increased competition.
The company’s full year profit was weighed down by a $241.8 million goodwill writedown to the workwear division and $46.6 million in restructuring costs.
Sales revenue grew 3.8 per cent to $1.32 billion during the 2013/14.
Earnings dropped more than 25 per cent due to lower profit margins and weakness in the workwear division.
Bortolussi said the sale of the workwear brands would allow the company to focus on better performing brands.
“The sale of Workwear simplifies and focuses Pacific Brands group strategy around maximising the potential of our market leading brands such as Bonds and Sheridan,” he said.
“It also reduces exposure to the challenging industrial market, and restores balance sheet strength to the company.”