Hanesbrands to sell sportswear business
31/05/2012
US-based underwear manufacturer Hanesbrands has announced
it will exit its unbranded apparel business in the US and sell its Outer Banks
sportswear label.
The company also plans to sell its European wholesale casual wear division to
an affiliate of Netherlands-based consumer goods company Smartwares for EUR15 million.
Rising raw material prices for fibres such as cotton have had a major impact on Hanesbrands' profitability. It recently reported a quarterly loss for the first time in two years.
The company believes the restructuring measures will reduce sales by $60 million but will not have a significant impact on operating profit.
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