Pacific Brands

Pacific Brands was an Australian consumer products company.
On Tuesday, 28 June 2016, the company suspended trading on the ASX in order to be acquired by Hanesbrands. Corporate changes/details were to be announced thereafter.
This acquisition was completed and Pacific Brands was consumed by HanesBrands.
Structure and brands.
The company is organised into three operating groups:
History.
The company's origins go back to 1893, when Ireland's Dunlop Pneumatic Tyre Company opened a branch office and factory in Melbourne. The branch was sold in 1899 and became a separate company, Dunlop Pneumatic Tyre Company of Australasia Ltd, independent of the original Dunlop company. After several name changes, the Australian company became Pacific Dunlop.
Pacific Brands was formed as a division of the Australian company Pacific Dunlop in 1985. In 2001, Pacific Dunlop sold the division to CVC Asia Pacific and Catalyst Investment Managers, who in 2004 floated the company on the Australian Stock Exchange. The company's stock forms part of the ASX 200 index.
Ethical trading.
As a founding Australian member in 2008 of the Ethical Trading Initiative (ETI), which is an independent and internationally recognised code of labour practice, founded on the conventions of the International Labour Organisation, annually discloses its ethical sourcing program to the ETI, including continuous improvement initiatives.
ETI members must adopt their principles of implementation, which set out the approach to ethical trade, including the requirements for companies to demonstrate a clear commitment to integrate ethical trade into their core business practices; to drive ongoing improvements to worker welfare and working conditions, for example through advice and training; and report openly and accurately about their activities.
Since joining the ETI in 2008, Pacific Brands has demonstrated leadership and yearly improvements which has seen its membership status upgraded from Beginner in 2008, to Improver in 2010 and to Achiever in 2011.
Pacific Brands is also a signatory to the Bangladesh Accord and is committed to driving safe working conditions in the country, notwithstanding that the Company does not currently source from Bangladesh.
Controversies.
Local manufacturing.
Pacific Brands have been criticized by union groups for their decision to move manufacturing overseas. In 2009, the board of Pacific Brands announced the redundancy of 1,850 employees, as part of a plan to move manufacturing operations to China. Union groups protested against the decision.
Human rights.
A key obligation for companies under the Ethical Trading Initiative base code is a living wage provision, which states that companies are obliged to pay enough for workers to meet basic needs and to provide some discretionary income.
Oxfam Australia has urged Pacific Brands to adopt transparent and independent auditing practices, as an initial step towards ensuring respect for the rights workers in their supply chain.
Executive remuneration.
During Morphet's leadership of Pacific Brands, sales had fallen by 15 per cent and net profit by 40 per cent. EPS decreased from 11.5 cents/share to 3.0 cents/share.
In October 2011, Pacific Brands shareholders voiced their disapproval for its remuneration report. There was a backlash from investors due to Pacific Brands bonuses. Although shareholders have had the right to vote on remuneration reports since 2005, the results of the shareholder vote were not binding on the board. Under the new rule, a company will be obliged to hold a spill vote of its board if its remuneration report is not supported by 75% or more shareholders for two years in a row. In the following year, shareholders supported the remuneration report, avoiding a second strike.