UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 15, 2009
Hanesbrands Inc.
(Exact name of registrant as specified in its charter)
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| Maryland
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001-32891
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20-3552316 |
(State or other jurisdiction
of incorporation)
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(Commission File Number)
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(IRS Employer
Identification No.) |
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1000 East Hanes Mill Road
Winston-Salem, NC
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27105 |
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executive offices)
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(Zip Code) |
Registrant’s
telephone number, including area code: (336) 519-8080
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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| Item 2.05. |
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Costs Associated with Exit or Disposal Activities |
On September 15, 2009, Hanesbrands Inc. (“Hanesbrands”) approved certain actions in
furtherance of its efforts to execute its consolidation and globalization cost-reduction strategy.
Hanesbrands approved the closing of a yarn manufacturing facility, a yarn warehouse and a cotton
warehouse, all located in North Carolina (collectively, the “Closing Facilities”), which will
result in the termination of approximately 175 employees. Operations at each of the Closing
Facilities are expected to cease by the end of 2009. As a result of these actions and the asset
sale described below in Item 7.01, Hanesbrands expects to recognize gross restructuring and related
charges totaling approximately $9 million before income taxes. These charges, approximately half
of which are cash charges, primarily relate to accelerated depreciation and severance costs
associated with the Closing Facilities and the Continuing Facilities (as defined below).
Of the approximately $9 million in charges, approximately one-half
are expected to be recognized in the third quarter ending
October 3, 2009, and the remainder is expected to be recognized
by the end of the second quarter of 2010.
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| Item 7.01. |
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Regulation FD Disclosure |
On September 17, 2009, Hanesbrands issued a press release announcing that it will cease making
its own yarn and that it will source all of its yarn needs from large-scale yarn suppliers.
Hanesbrands also announced that it has entered into an agreement with Parkdale America, LLC
(“Parkdale America”) under which Hanesbrands will sell or lease assets related to operations at its
four yarn manufacturing facilities, which are located in Georgia, Virginia, North Carolina and
Tennessee, to Parkdale America. The transaction is expected to close in the fourth quarter of 2009
and will result in Parkdale America operating three of the four facilities (the “Continuing
Facilities”). As discussed above in Item 2.05, Hanesbrands will close the facility located in
North Carolina as well as two related warehouse facilities.
In addition, Hanesbrands has entered into a yarn purchase agreement with
Parkdale America and Parkdale Mills, LLC (together with Parkdale America, “Parkdale”). Under this
agreement, which has an initial term of six years, Parkdale will produce and sell to Hanesbrands a
substantial amount of Hanesbrands’ Western Hemisphere yarn needs. During the first two years of
the term, Parkdale will also produce and sell to Hanesbrands a substantial amount of the yarn needs
of Hanesbrands’ Nanjing, China textile facility.
A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.
Exhibit 99.1 is being “furnished” and shall not be deemed “filed” for purposes of Section 18 of the
Securities Exchange Act of 1934 (the “Exchange Act”), nor shall Exhibit 99.1 be deemed incorporated
by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be
expressly set forth by specific reference in such filing.
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| Item 9.01. |
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Financial Statements and Exhibits |
(c) Exhibits
Exhibit 99.1 Press Release dated September 17, 2009