HanesBrands’ sale of its Champion brand business will lead to the permanent layoff of 75 workers at its High Point distribution center on Eagle Hill Drive, according to a report filed with the N.C. Department of Commerce.
“The operations at the High Point Distribution Center were primarily focused on fulfilling the distribution needs of the Champion brand business,” according to the filing. HanesBrands will close the distribution center around Jan. 31.
Some employees will lose their jobs around Dec. 31, and have already been notified. Others will stay on until around Jan. 31, and will be notified later. Hanesbrands is not a part of a union and bumping rights do not exist.
Winston-Salem-based HanesBrands announced in June it would sell its Champions brand for $1.2 billion to New York City-based Authentic Brands. Authentic includes businesses such as Eddie Bauer, Brooks Brothers, Rockport and Reebok. That sale was completed in September. Hanesbrand had the potential to earn up to $300,000 in the deal depending on how the Champions brand performed.
Hanesbrand expects the sale to allow it to pay down $1 billion in debt by the end of the year and focus on its other brands, including Hanes, Bonds, Maidenform and Bali.
HanesBrands’ shares have traded for between $3.58 and $7.57 in the past year and was trading around $7.13 midday Monday. In the past year, its stock is up 58.8%. It has a market capitalization of $2.5 billion.
HanesBrands has about 48,000 employees in 30 countries, including about 2,400 in North Carolina and about 1,000 in Forsyth County. HanesBrands laid off about 159 workers in April at a Winston-Salem distribution center.