NATIONAL: Pacific Brands is set to slash 1850 jobs and shut down its manufacturing operations in Australia, heralding far-reaching implications for local industry.
In a half year results announcement this morning, Pacific Brands chief executive Sue Morphet said 1200 jobs would be lost in its manufacturing arm. This would be part of a complete sourcing "overhaul" which included the closure of a majority of its local clothing factories across Victoria, New South Wales and Queensland.
"The reduction in complexity will deliver the future strength, growth, profitability and sustainability if the business - for our shareholders and our employees," Morphet said.
Rumours abound that the group will look to sell parts of its outerwear and sportwear arms - thought to be its poorest performing division.
However Pac Brands CEO Sue Morphet this morning (February 25) refused to comment on which 200 of its brands the company would look to offload, citiing "commercial sensitivity".
The Textile, Clothing and Footwear Union of Australia has called for urgent discussions between industry minister Senator Kim Carr and Pacific Brands. National secretary Michelle O'Neil said the spin-off effect on suppliers and related companies could see thousands more jobs lost.
"The union does not accept that the complete closure of these sites is necessary. A number of the brands and divisions of this business continue to be profitable while manufacturing in Australia."
O'Neil said the company had received millions of dollars in Federal Government assistance, including $9 million in industry support over 2007/08.
"How can a company take from the Australian Government and the Australian community for years without a mutual obligation to keep jobs in Australia?"
Pacific Brands' portfolio included Bonds, Holeproof, Kayser, King Gee and Yakka.
For more, pick up a copy of Ragtrader's bumper March 13 issue.