John Pollaers, the new CEO at the clothing and footwear wholesaler Pacific Brands, told LeadingCompany today about his plans to make designers the “heroes” of the brands in his company’s stable.
Many of these brands are iconic – Bonds, Berlie, Holeproof, Hard Yakka, King Gee and Sheridan sheets.
Pollaers talked with long-suffering shareholders at today’s annual general meeting about his impressions of his “exciting first 50 days” as CEO of Pacific Brands. “Most of our well-known and respected brands are in better shape than I expected,” Pollaers told shareholders.
Speaking after the meeting to LeadingCompany, Pollaers elaborated on the points he made in his presentation to shareholders about his plans to revive the company.
The current state of play
Pollaers has no good financial news to revive the spirits of shareholders, who’ve been driven close to despair by the $450.7 million loss announced in the full-year financial results in August. Year to date, group sales are down.
Pollaers’ spirits, however, are high and at the meeting he wanted to pass on some of this fervour to shareholders. “Short term, the trading environment remains challenging,” Pollaers said. “But now I want to share with you why I took on the role as your CEO and why I am optimistic about the future.”
Pollaers has visited every major business site in Australia, China, Hong Kong and Indonesia. He has examined the supply chain and caught up with suppliers.
“I have completed a thorough review of each business with management taking me through the current state of play, their business plans, and discussing the opportunities in front of them – and I am pleased to say there are a great many opportunities available to the company, and of course there are some challenges,” Pollaers said.
From beer to bras
Pollaers was seen by some as a controversial appointment, coming as he does from outside the clothing and footwear sector. His predecessor, Sue Morphett, had 16 years with Pacific Brand, including the last five years in the top job.
Pollaers was, for a short time, the CEO of the beer maker, Foster’s Group, before Foster’s was bought out by SABMiller. His history is in the liquor industry. Prior to Fosters, he was with cocktail maker, Diageo.
Analysts, however, point to Pollaers’ “big brand” experience, working in difficult market conditions and experience with wholesale and retail.
Pollaers tells LeadingCompany his understanding of consumer products and of turnarounds is applicable to his current role. “I have more than 20 years in consumer products, and that means really working back from consumer through to retail. I have done seven or eight turnarounds over that time. Facing these circumstances is something I am very used to.”
Pollaers’ strategy
1. Shift the focus to customers and consumers
> With the internal pain behind the company (staff sacked, brands jettisoned, writedowns taken), Pollaers will turn his attention to the market.
> Work with retailers on the presentation and position of Pacific Brands products in store will lead to some growth in the brands, he says.
