The listed company approached the Australian Securities Exchange and its New Zealand equivalent the New Zealand Exchange to request a trading holt this morning (May 11).
This will remain in place until the group announces an outcome or when trading begins on Wednesday.
Pac Brands CEO Sue Morphet said in a statement the capital raising would improve the group's balance sheet and provide the company with additional "financial flexibility".
"The raising will place Pacific Brands in a much stronger financial position and better position the company to withstand any further softening in the retail environment."
The news follows on from Morphet's announcement in February that the group would undertake a complete sourcing overhaul, shed staff, divest its non-core business and discontinue under-performing brands.
Morphet said Pacific Brands had been working on all aspects of its strategy since then and had received a "large number" of expressions of interest in regard to the sale of some of its labels.
"Discussions with third parties are incomplete and predominantly at an early stage and it is not possible to assess at this time whether they will result in transactions," Morphet said.
Labels within the Pacific Brands stable include Bonds, King Gee and Dunlop.