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Bonds, King Gee owner slashes 1,850 jobs
Bonds owner and clothing manufacturer Pacific Brands says it will cut 1,850 jobs in Australia over 18 months after posting a $150 million first-half loss and suspending its dividend.
The cost-cutting will see Pacific Brands close the majority of its Australian clothing and manufacturing operations, discontinue small labels and brands, and sell properties or relocate.
The company's brands include Bonds, Holeproof, Jockey, King Gee, Hard Yakka, Dunlop and Clarks.
A total of 1,200 manufacturing jobs and 650 non-manufacturing jobs will go.
The site hardest hit by the cuts will be the Hosiery factory in Coolaroo, Victoria, where 298 jobs have been lost.
Jobs will also go at Bonds plants in Wentworthville, Unanderra and Cessnock in New South Wales.
There will be more cuts at Holeproof in Nunawading, Victoria, King Gee in Bellambi, New South Wales, and CTE in Brisbane's West End.
The Federal Industry Minister Kim Carr says he tried unsuccessfully to change the decision.
"Three weeks ago, I made it my business to directly talk to the company's senior management to establish whether or not it was possible to change this decision," he said.
"The company has made this decision based on its view of its commercial interests and it has been made at a strategic level after a year-long review."
Victorian Premier John Brumby says the job losses show Victoria is not immune from the global economic slowdown.
"Export markets have just gone, and I've been saying for some time we will see announcements at this time," he said.
"We will see this international wave that breaks over our state and that breaks over Australia. This is an example of it."
Pacific Brands shares fell almost 3 per cent to $0.34 after today's announcement. |
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