Blog: Leonie BarrieSara Lee spin-off

Leonie Barrie | 14 February 2005

Sara Lee’s decision to spin off its apparel business into an independent, publicly traded company certainly seemed to please investors, with shares up 4.1 per cent higher, or 95 cents, to $23.92. The firm’s brands such as Hanes, Champion and Playtex rang up more than $4.5 billion in revenue last year – and the hope is that this will be a mere drop in the ocean once the division is free from the shackles of a large corporate environment. Languishing as it does at the commodity end of the market, there is no doubt that Sara Lee will benefit from the faster reaction times that are inherent in a smaller set-up. 

As for his own track record, the last spinoff overseen by chief executive Steve McMillan was that of Coach Inc in 2000, since when it has churned out sales growth in double-digit percentages every year. Quite a track record, and one that the market will no doubt hope McMillan's successor Brenda Barnes can emulate.


BLOG

Trump and Brexit generate more confusion

Over the past month, Donald Trump and his team failed to offer any clear plan to ensure Americans would "Buy American, Hire American" - while the British government's attempts to clarify the specifics...

BLOG

Bangladesh works to resolve labour activist issues

The Bangladesh government was forced to respond late last week to pressure over its crackdown on labour activists after a number of global brands and retailers, including H&M and Inditex announced pla...

BLOG

US border tax a contentious issue

Fresh from their disappointment at seeing the Trans-Pacific Partnership (TPP) free trade deal abandoned last month with an executive order by President Donald Trump, the US apparel and footwear sector...

BLOG

Primark's sustainable cotton programme takes shape

With the ultimate aim of ensuring all the cotton in its products is sourced sustainably, value clothing retailer Primark is adamant that having a business model focused on offering the lowest prices o...

just-style homepage



Forgot your password?