Hanes Australasia
| Company type | Division of a corporation |
|---|---|
| Industry | Consumer goods |
| Predecessor | Pacific Brands |
| Founded | 1985 |
| Fate | Acquired by Hanesbrands in 2016 |
| Headquarters | Australia , Australia |
Area served | Australia, New Zealand |
| Products | Underwear, bras, socks, hosiery, baby apparel, activewear, outerwear, bedding, towels, home lifestyle products, pillows, quilts, flooring solutions |
| Owner | Hanesbrands |
| Parent | Hanesbrands |
Hanes Australasia, previously known as Pacific Brands, is an Australian consumer goods enterprise operating as a division of the American corporation Hanesbrands.
Organization and Brand Portfolio
The business functions through three principal segments:
- Underwear: providing a range of underwear, bras, socks, hosiery, baby apparel, activewear, and outerwear. Prominent brands within this segment include Bonds, Berlei, Jockey, Explorer, Rio, Bras N Things, and Holeproof
- Sheridan: specializing in high-end bedding, towels, and home lifestyle products predominantly under the Sheridan label
- Tontine and Dunlop Flooring: covering pillows and quilts with brands such as Tontine, Dunlopillo, Fairydown, Crestell, Biozone, Dream-a-way, and Natures Dreams; additionally offering flooring solutions including carpet underlay and hard flooring through Dunlop Flooring and Heartridge brands
Company History
The origins of the company date back to 1893 when the Dunlop Pneumatic Tyre Company established a manufacturing plant in Melbourne. This entity became autonomous in 1899 as Dunlop Pneumatic Tyre Company of Australasia Ltd, which subsequently transformed into Pacific Dunlop.
Pacific Brands was inaugurated in 1985 as a consumer goods division within Pacific Dunlop. In 2001, Pacific Dunlop divested this division to CVC Asia Pacific and Catalyst Investment Managers, who subsequently floated it on the Australian Stock Exchange in 2004. The company’s shares were part of the ASX 200 index.
Trading on the ASX was halted on 28 June 2016 following Hanesbrands’ acquisition of Pacific Brands in a transaction valued at roughly A$1.1 billion. This takeover integrated Pacific Brands into Hanesbrands’ portfolio, reinforcing its presence in the Australian consumer market.
Chronology
- 1893 – The Dunlop Pneumatic Tyre Company initiated a brand and factory establishment in Melbourne.
- 1915 – George Alan Bond founded Bonds.
- 1920 – Bonds commenced production of the Men's Athletic Singlet known as the Chesty Bond.
- 1929 – Expanded into footwear manufacturing with rubber boots.
- 1937 – Entered the sporting goods sector by acquiring Empire Racket Company.
- 1939 – The Dunlop Volley was developed, inspired by tennis player and Dunlop employee Adrian Quist.
- 1960 – Began manufacturing Sleepmaker inner spring mattresses.
- 1969 – Entered underwear and sock markets through acquisition of Holeproof and Berlei Hestia Ltd.
- 1971 – Established branded footwear operations by acquiring Grosby.
- 1982 – Acquired Paul Winestock's enterprise, enhancing footwear import capabilities.
- 1985 – Launched Pacific Brands as the consumer goods arm of Pacific Dunlop.
- 1987 – Strengthened position in underwear and hosiery by purchasing Bonds.
- 1994 – Opened inaugural Sheridan Boutique stores in Double Bay and St Ives.
- 1995 – Entered outerwear sector via acquisition of Boydex International Pty Ltd.
- 1997 – Established wholly owned bra manufacturing facility in Indonesia (PT Berlei Indonesia).
- 2000 – Expanded footwear brand portfolio with Australian licenses for Clarks and Hush Puppies; served as major supplier for Sydney Olympic Games.
- 2001 – Acquired Sara Lee Apparel Australia (including King Gee, Playtex, Razzamatazz, Stubbies).
- 2002 – Pacific Brands separated from Pacific Dunlop; sold to CVC Asia Pacific and Catalyst Investment Managers; PT Berlei received WRAP certification.
- 2003 – Purchased Kolotex hosiery and Sachi women's footwear brands.
- 2004 – Listed on stock exchanges in Australia and New Zealand.
- 2005 – Secured distribution license for Merrell Footwear; acquired Sheridan business including Actil and Arthur Ellis brands.
- 2006 – Acquired Peri and Foam Products Australia (FPA).
- 2007 – Bought streetwear division of Globe International (brands such as Mooks, Mossimo, Paul Frank, Superdry, Stüssy); became leader in workwear market by acquiring Yakka group (including Yakka, Hard Yakka, Can't Tear 'Em, Stylecorp, NNT Uniforms, Wrangler, Lee Jeans).
- 2008 – Introduced Berlei Barely There bra; joined Ethical Trading Initiative (ETI) as founding Australian member.
- 2009 – Rated Beginner by ETI; announced plan to cease most local manufacturing due to economic challenges from GFC; laid off approximately 1,850 employees; closed majority of Australian production facilities; raised $165 million via capital raising and debt refinancing; donated over AU $500,000 worth of products to Salvation Army and more than AU $50,000 cash to Red Cross for bushfire relief; employees volunteered in support efforts.
- 2010 – ETI rating advanced to Improver; divested Chinese Grosby shoe factory and UK footwear business exiting footwear manufacturing; Tontine launched date-stamped pillow encouraging replacement every two years based on hygiene research.
- 2011 – Sold Sleepmaker and Dunlop Foams to Sleepyhead (NZ); divested Leisure and Fitness segment including Malvern Star Bicycles to Sheppard Cycles (NZ); acquired Brands United retail stores; launched websites www.sheridan.com.au and www.bonds.com.au; ETI rating elevated to Achiever.
- 2012 – Volley served as official dress shoe for Australian Olympic Team at London Olympics; BONDS opened first retail outlet at Westfield Doncaster, Victoria.
- 2013 – Acquired UK corporate apparel company Incorporatewear Ltd.; became signatory to Bangladesh Accord.
- 2014 – Sold Workwear portfolio (including Stubbies, King Gee, Hard Yakka) to Wesfarmers for $180 million; divested footwear and sport portfolio ("Brand Collective") including Clarks, Hush Puppies, Julius Marlow, Volley, Mossimo, Superdry, Dunlop Sport Australia, Slazenger, Everlast, Grosby, Harrison, Freshjive.
- 2015 – Engaged brand ambassadors Iggy Azalea (Bonds), Jessica Marais (Berlei Sensation), Serena Williams (global extension for Berlei Sport); commemorated Bonds’ centenary; acquired Crestell pillow and bedding accessories business encompassing Crestell, Biozone, Dream-a-way, Natures Dreams brands.
- 2016 – Purchased by Hanesbrands for $800 million.
Ethical trading
Pacific Brands has been an Australian founding participant of the Ethical Trading Initiative (ETI) since 2008, providing annual reports on its ethical sourcing efforts and continuous enhancement measures to ETI. Membership in ETI requires embedding ethical trade principles into fundamental business operations, promoting persistent advancements in employee welfare and working conditions through education and guidance, and maintaining transparent disclosure of related activities.
Since becoming part of ETI, Pacific Brands advanced from Beginner status in 2008 to Achiever status by 2011, demonstrating its commitment to leading ethical trade practices. Additionally, the company has endorsed the Bangladesh Accord, pledging to uphold safe workplace standards there despite not currently sourcing products from Bangladesh.
Local manufacturing
Pacific Brands encountered opposition from labor unions due to its decision to relocate production offshore. In 2009, the company declared the elimination of 1,850 positions as it moved manufacturing operations to China, which sparked union-led protests.
Human rights
The Ethical Trading Initiative’s base code mandates payment of a living wage that covers workers’ essential needs plus discretionary income. Oxfam Australia has called on Pacific Brands to implement transparent and independent audits of labor conditions within its supply chain to guarantee adherence to workers’ rights.
Executive remuneration
During Morphet’s tenure, Pacific Brands saw a 15% reduction in sales alongside a 40% decline in net profit, with earnings per share dropping from 11.5 cents to 3.0 cents.
In October 2011, shareholders voiced strong dissatisfaction with the company’s remuneration report, reacting unfavorably to executive bonus schemes. While shareholder votes on such reports had been advisory since 2005, new regulations now mandate a board spill vote if under 75% approval is recorded for two consecutive years. The subsequent year, shareholder endorsement of the remuneration report averted a second strike.