The footwear and apparel businesses was sold to Australian private equity firm Anchorage Capital Partners. Owned brands, including Grosby, Julius Marlow and Volley, as well as licensed brands Clarks, Hush Puppies, Mossimo and Superdry, and the Iconix Joint Venture transfered with the business.

Sport brands Dunlop and Slazenger were sold to IBML, a division of UK-based Sports Direct International Plc, who owns these brands outside Australia and New Zealand. The Everlast equipment licence from IBML to Brand Collective was terminated in connection with the sale.

Sport assets related to the Sport business, including Everlast equipment, were sold to Designworks, a division of Australian listed company The PAS Group who will license the Dunlop, Slazenger and Everlast brands from IBML Gross proceeds from the transactions of 39 million Australian dollars (approximately 34 million US dollars), on a cash and debt free basis, will be applied to further reduce net debt. The carrying value of related net assets to be disposed is expected to be approximately 66 million Australian dollars (roughly 57.5 million US dollars) at completion. Subject to cost of disposal and completion adjustments, Pacific Brands expects to recognise a loss on sale of approximately 30 million Australian dollars (approximately 26 million US dollars) in the financial year ending 30 June 2015.

According tot he company, in the financial year ended on the 30th June 2014, the Brand Collective business reported total sales of 204.5 million Australian dollars (roughly 178.4 million US dollars) and an EBIT loss of 22.3 million Australian dollars (approximately 19.5 million US dollars)

Pacific Brands Chief Executive Officer David Bortolussi said: “The sale of the Brand Collective business is consistent with our strategy to simplify and focus Pacific Brands on maximising the potential of our market leading brands such as Bonds and Sheridan. While this has been a complicated divestment to execute, the transactions are all unconditional and should be completed within two weeks with minimal disruption to customers and our core business. From a pricing perspective, the divestment represents good value to our shareholders for an unprofitable division. This transaction also represents the conclusion of the strategic review. The divestments of Workwear and Brand Collective will dramatically simplify Pacific Brands and significantly improve the overall quality and growth prospects of the brand portfolio. We will continue to consider other options to build shareholder value including further investment in our brands, wholesale partnerships, retail stores, online, category expansion and international distribution.”

Note - All relevant amounts involved in the business were communicated by Pacific Brands in Australian Dollars. An exchange rate of 0.8726 was applied to obtain the figures in US dollars, as per Federal Reserve rates