Pacific Brands has agreed to spin off and sell the sports and footwear businesses of its loss-making Brand Collective division for 39 million Australian dollars (€26.8m-$33.7m). The division generated revenues of A$204.5 million (€140.6m-$176.5m) in the financial year ended on June 30, down 8 percent from the previous year, and an operating loss (Ebit) of A$22.3 million (€15.3m-$19.2m). The assets were given a carrying value of A$66 million (€45.4m-$57.0m).

A private equity firm, Anchorage Capital Partners, is going to take over Pacific Brands' shoe and apparel operations, which include the Volley brand of sneakers and a couple of other own brands, Grosby and Julius Marlow, along with the licenses for the Australian market of Clarks, Hush Puppies, Mossimo and Superdry.

The sports-related assets are the licenses for Dunlop, Slazenger and Everlast. They are being transferred to a subsidiary of their owner, Sports Direct International, which will license them out to an Australian apparel company, The PAS Group.

Pacific Brands had previously divested its workwear business. It will be left with a few assets including the Bonds and Sheridan brands of children's clothing and bedding. The company, which is quoted on the stock exchange, changed its top management recently, appointing David Bortolussi as chief executive. It reported a net loss of A$224.5 million (€154.4m-$193.7m) for last year, mainly due to extraordinary charges, on total revenues of A$1.32 billion (€907.8m-$1,139.2m).