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Hanesbrands Adds Maidenform, Subtracts Workers

Hanesbrands Inc., the North Carolina based clothing company famous for Hanes underwear and Champion athletic apparel, will be laying off a significant number of workers as a result of its recent acquisition of Maidenform Brands Inc.

The deal was agreed upon in July 2013 for $575 million. Industry analysts have been speculating about the labor consequences of the merger, especially in New Jersey, where Hanesbrands employs approximately 2,500 out of its more than its 50,000 employees. Maidenform, a New Jersey based company, maintains about 1,250 workers in the region. Just-Style magazine is reporting today that as many as half of Maidenform’s employees in the region will lose their jobs.

According to a Hanesbrand spokesperson, the acquisition will complement their current retail offering unusually well. Maidenform’s emphasis on average size bra production will be a good strategic addition to its own full-figured collection. Also, Hanesbrands can cut its costs by shifting Maidenform’s sourcing through third-party manufacturing to its own in-house manufacturing facilities. About 57 percent of Maidenform’s revenue came from bra sales.

Richard Knoll, Hanesbrands CEO, said, “This business is a natural fit into our core business and meets all of our acquisition criteria.”