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    Hanesbrands Inc, The Largest American Underwear Manufacturer, Is Selling European Business Out Of The European Market

    2012/5/31 9:35:00 36

    UnderwearPrinting MarketUnderwear Manufacturer Hanesbrands Inc

      

    Hanesbrands Inc, the largest underwear manufacturer in the US

    (NYSE:HBI) announced on Wednesday that it plans to sell its European Imagewear business, and plans to close the private label business and sell the Outer Banks brand in the US.


    Imagewear constitutes 8% of Hanesbrands's revenue.

    The company is expected to take into account the restructuring expenses related to the sale of the Imagewear sector in the second quarter, which is between us $85 million and US $95 million, and expects that the sale will lead to a reduction of US $60 million in the second half of this year.


    Matt Hall, a spokesman for the company, said the restructuring would not lead to layoffs.


    The sale will eliminate all HanesBrands's exposure to Europe, where the economic situation seems to be deteriorating.


    The company plans to sell the Imagewear department at a price of about 15 million euros (US $18 million 800 thousand) to a subsidiary company of Smartwares BV, Holland.

    Imagewear in

    Printing market

    After the sale of basic clothing to wholesalers, the rest of Imagewear will be renamed Branded Printwear and will focus on Hanes and Champion brands in the United States.


    The sale is expected to be completed this week.

    Richard Noll, chairman and chief executive of Hanesbrands, said: "after leaving Europe, we will be able to concentrate all our efforts on developing our brand portfolio in the core markets of the Americas and Asia."


    Hanesbrands is famous in America.

    Underwear

    And sportswear manufacturers, including brands such as Hanes, Champion and Wonderbra.

    The company's financial report released last month showed its net loss of $26 million 800 thousand in the first quarter of fiscal year 2012, and its revenue fell by 3%.

    The company reiterated on Wednesday that its earnings per share for the 2012 year were expected to be 2.50-2.60 dollars.

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