Published on August 14th, 2012
Pacific brand’s land sale in Wentworthville
Pacific brands will sell surplus land in western Sydney for up to $27 million as part of a major restructuring program, according to one source.
In an announcement made by Pacific Brands yesterday (August 13), the clothing, footwear and bedding manufacturer said it had made the decision to sell its eight hectare Bonds' freehold property in Dunmore Street, Wentworthville.
The sale of the Bonds' factory is expected to generate net proceeds of $27 million, which will lead to a one-off sale profit in 2013-14 of $11 million that will be brought into account in the 2014 financial year.
According to Pacific Brands, the sale completes a process of transformation for the company.
The transition has brought a long-list of challenges to executives after the company put in place a major restructuring program to streamline services and boost its productivity in 2009.
This has meant job losses for many workers in the area, which will total 1,850 once each stage of the program is complete.
While representatives from Pacific Brands said selling the western Sydney site was a major plus for the business, there is no doubt that a lot of work was put into the final negotiations.
At this point in time it is unclear who has bought the property, but this information will likely become available once the sale is formalised.
And while there has been some talk of redevelopment within real estate circles, the site's heritage listing may make it difficult to go ahead with construction work that doesn't fit in with the history of the region.
Pacific Brands represents a number of retailers and clothing lines, however, its most famous labels include Bonds and Berlei – two brands uniquely associated with Australia's fashion history.