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Dunlop Volley: the Aussie icon is up for sale

Flickr / Jason Ilagan

Flickr / Jason Ilagan

The Dunlop Volley, the shoe of choice for many of Australia’s greatest tennis champions, may soon be foreign owned.

The 75-year-old brand was created at the Dunlop Rubber Factory in Melbourne, made famous by 1976 Australian Open winner Mark Edmondson, and remains popular with all types, from tradies to sailors to hipsters.

Its owner, Pacific Brands, is in talks to sell the segment of its business that controls Volley, along with other well-known shoe makers Clarks and Hush Puppies.

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Just three months ago, the company sold its workwear division – which included Stubbies and King Gee – for $180 million.

Dunlop Volleys

Photo: Flickr / Jason Ilagan

Pacific Brands wants to sharpen its focus on its largest businesses – underwear brands Bonds and Berlei, plus Sheridan manchester and Tontine bedding.

“The company confirms that it is in discussions regarding a potential sale of its Brand Collective business,” the company said in a statement on Monday amid media speculation about a possible sale.

“However, a transaction has not been agreed.”

IG market strategist Evan Lucas said the prospective buyer may be a medium-sized clothing company, but is most likely a private equity firm, potentially from Asia.

Pacific Brands’ statement indicates a sale is close to being finalised, but the sticking point is price, he said.

“That’s what they have said, `we are certainly talking, but we haven’t agreed on a transaction’, in other words, `we haven’t agreed on a price’,” Mr Lucas said.

“That they’ve released this to the market means they are well and truly in talks, and fairly advanced talks at that.”

Brand Collective is the smallest division of Pacific Brands, a company which remains under immense financial pressure, making a loss in four of the past six years.

News of a potential sale boosted Pacific Brands’ share price, up one cent, or two per cent, to 49.5 cents by 1500 AEDT.

But the shares have been on long, gradual slide for years, from $3.35 in mid-2007.

Mr Lucas said a sale of Brand Collective would not guarantee a turnaround.

“It is very hard to cut, and cut as hard as you can, to try and stabilise your book, rather than look at anything else, and that is why Pacific Brands is still being fairly heavily hit,” he said.

“Until they get growth going, specifically in their underwear business, it is going to be hard going for them.”

What is a brand collective?

• Footwear, clothing and sporting goods brands including Volley, Clarks, Hush Puppies, Julius Marlow, Mossimo, Superdry and Slazenger

• Made up 16 pct of Pacific Brands’ sales in 2013/14

• Made a loss of $22.3m in 2013/14, with sales down 7.9 pct

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