Shares in Australian troubled underwear manufacturer Pacific Brands shot up today (10 January) as the company received an unsolicited approach from private-equity firm Kohlberg Kravis Roberts.

Shares in the retailer jumped 14% to A$0.64 a share after reports of the approach broke.

In an Australian Stock Exchange filing, Pacific Brands confirmed that it is engaged in preliminary discussions with KKR regarding a possible acquisition, but that there is "no certainty that these discussions will lead to any agreement being reached between the parties".

In August, Pacific Brands reported an A$131.5m loss for the financial year as it booked some $235.3m in impairment charges relating to non-cash write-downs, one-off transformational costs and divestments. Sales were down 7.3% to $1.6bn.

Pacific Brands is being advised by Flagstaff Partners and Minter Ellison.