HanesBrands (asi/59528) is moving into new digs.
The publicly traded global manufacturer of apparel basics, whose goods sell extensively in the promotional products market, announced Monday, July 8, that it’s relocating to a new corporate headquarters at 101 North Cherry Street in what was described as the heart of downtown Winston-Salem, NC.
Geographically, it’s not a huge move for the company, whose current headquarters are in the Oak Summit section of Winston-Salem on East Hanes Mill Road.
Still, executives believe the new space, described as modernized and newly renovated, will help the firm strengthen its operating model, simplify its business and streamline its operations while fostering collaboration and innovation among employees.
“We are excited to have a continued presence in the city where HanesBrands began more than 120 years ago,” said CEO Steve Bratspies. “We are confident the downtown area will offer opportunities for connectivity among associates who are passionate about executing with excellence for our consumers and customers around the world.”
HanesBrands said it has entered into an agreement to sell the current headquarters to a “third party” but didn’t identify the business. Hanes plans to transition to the new headquarters in early 2025.
Local officials lauded the move. “I am excited to see the continued impact HanesBrands will have on our city,” said Winston-Salem Mayor Allen Joines.
The announcement of the new headquarters comes about a month after HanesBrands inked a deal to sell its Champion brand to Authentic Brands Group. The agreement will see ABG pay Hanes at least $1.2 billion, with a possibility of up to $1.5 billion if performance thresholds are met. The deal is subject to customary closing conditions. HanesBrands anticipates net proceeds of $900 million from the Champion sale – money it plans to use to reduce debt.
HanesBrands has been struggling of late and free-falling Champion sales have contributed to revenue and earnings woes for the company. Across its entire global business, HanesBrands’ sales fell 17% year over year in the first quarter of 2024 while the apparel maker sustained a loss of $39.1 million, or -$0.11 per share.
