T-shirt and underwear maker Hanesbrands Inc says the closure of retailer Mervyns LLC will cost it $5.5m in third quarter charges.

Mervyns, a regional retailer in California and the Southwest, originally filed for Chapter 11 bankruptcy reorganisation on 29 July.

But last week it decided to wind down its business and conduct going-out-of-business sales at 149 remaining store locations.

Hanesbrands, whose products include Hanes, Champion, Playtex, Bali, Just My Size, Barely There and Wonderbra, says the charge of $0.04 per share after tax, will be included in its third-quarter results which are due to be released on Wednesday (29 October).

For the third quarter, Winston-Salem, North Carolina-based Hanesbrands expects earnings of $0.56 per share, up $0.08 from the third quarter a year ago.

The apparel firm is also due to be hit by restructuring charges of $76m, of which two-thirds will be incurred in the third quarter of 2008.

This follows its decision last month to close nine plants in five western hemisphere countries and axe 8,100 jobs as it consolidates production into fewer and bigger facilities in Asia.