HanesBrands Inc. recently revealed that it is closing one of its U.S. factories after selling one of the company’s brands earlier this year. The closure of the factory is expected to result in 75 layoffs over the next couple of months.
According to Business North Carolina, HanesBrands is planning to close the High Point Distribution Center by January 31. The outlet noted that a Worker Adjustment and Retraining Notification notice filed with the North Carolina Chamber of Commerce indicated that the distribution center’s closure will lead to 75 job cuts.
The closure of the High Point Distribution Center comes after HanesBrands sold its Champions brand to Authentic Brands for $1.2 billion. Business North Carolina reported that Authentic Brands include Reebok, Brooks Brothers, Eddie Bauer, and Rockport.
In the company’s recent filing with the North Carolina Chamber of Commerce, HanesBrands said, “The operations at the High Point Distribution Center were primarily focused on fulfilling the distribution needs of the Champion brand business.”
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According to Business North Carolina, some of the company’s impacted employees have already been notified and will be laid off at the end of December, while other employees will be notified in the coming weeks and will be laid off by the end of January.
In a June press release, HanesBrands Board of Directors Chairman Bill Simon discussed the company’s sale of the Champion brand, saying, “Following a thorough review of options for the global Champion business with the support of our financial and legal advisors, we are pleased to have reached this agreement with Authentic Brands Group that we believe maximizes value for Champion and best positions HanesBrands for long-term success.”
Simon explained that the sale of Champion would help HanesBrands “accelerate its debt reduction” and help the company “deliver consistent growth and cash flow generation” by advancing the company’s “innerwear brands” and improving its supply chain.
In a Thursday press release, HanesBrands said it had “completed sale of the global Champion business, subsequent to the third-quarter” and is “on track to pay down approximately $1 billion of debt in the second-half of 2024.”
