Sara Lee Completes Hanesbrands spinoff

After an 18-month effort, Sara Lee Corp. completed the tax-free spinoff of apparel company Hanesbrands Inc. to its shareholders in September 2006. With the company's portfolio transformation now accomplished, Sara Lee Corp. will focus on continuing to improve operating and financial performance, as well as building its core brands. "With the spin-off complete, we close the chapter on our portfolio transformation, having shed non-core assets to focus on growing our food, beverage and household and body care categories," says Sara Lee Chairman and Chief Executive Brenda Barnes. Shortly after the spinoff took place, Hanesbrands Inc., whose brands include Hanes, Champion and Wonderbra, announced plans to shut down three plants in the United States and Mexico, and cut 2,185 jobs as it moves production from those plants to cheaper sites domestically and in the Caribbean and Central America. Hanesbrands says it would record $27 million in restructuring, severance and related charges in fiscal 2007.