Pacific Brands is leaving the footwear market. The Australian company sold its unprofitable yet iconic Aussie footwear label Volley, and its local licenses to the Clarks and Hush Puppies brands, to Sydney-based private equity firm Anchorage Capital Partners for $34 million. The footwear brands and licenses, also known as the Brand Collective, are estimated to be worth roughly $58 million.
Brand Collective also holds the licenses for the Superdry and Mossimo brands, however it is the smallest division of Pacific Brands contributing just 16 percent of the company’s overall sales in 2013 to 2014. In the year ended June 30, 2014, the collective saw sales dip 7.9% to $178 million.
The sale also includes transferring Pacific Brands’ Australian and New Zealand licensing agreements of sporting brands Dunlop, Slazenger and Everlast to The PAS Group’s Designworks.
Pacific Brands hasn’t been shy about its plans to shed portions of its business. In an effort to focus on its underwear labels Bonds and Berlei, and linen brand Tontine, the company sold off its workwear unit, which included Stubbies and King Gee, in August for $168 million.