Up to 130 textile workers are to lose their jobs after consumer goods firm Pacific Brands acquired the Kolotex hosiery business from Kolotex Australia.

Pacific today completed its purchase of the company for a mystery sum and said its manufacturing and warehousing operations would be transferred to the group's Kayser hosiery site in Victoria and the Leichardt plant closed.

Group general manager of Pacific Brands' underwear and hosiery division, Steve Audsley, said: "We regret that this will result in the loss of approximately 130 manufacturing and warehousing positions at Leichhardt.

"Consolidation of manufacturing for both brands at the Coolaroo site will ensure that the Australian hosiery industry remains competitive and is able to retain the current locally-made volumes in the face of minimal barriers to the entry of imports in an industry worth $A150 million ($US97m) in retail sales.

"Despite the centralisation of manufacturing and warehousing in Victoria, it is intended to retain a separate Kolotex brand identity and to operate Kolotex as a separate sales and marketing business in Sydney."

He added both the Kolotex and Kayser brands would continue to be marketed separately.