Playtex factory liquidation leaves hundreds without work in SA

Hanes South Africa, which holds the licence to manufacture, sell and distribute underwear under the Playtex trademark in South Africa and several other African countries, has filed for voluntary liquidation.

Credit: jackmac34 via Pixabay

The 60-year-old company's factory in Mobeni East has been shut since early January, according to an IOL report, leaving over 700 employees without work. Staff were notified via email and SMS on 13 January that the business had filed for liquidation on 6 January and that all activities were immediately suspended. Employees were paid their salaries and benefits until 15 January.

In a statement released by Hanes South Africa, the company said: “After careful consideration, the board of HSA has decided to file for creditors voluntary liquidation as it believes this will be the best outcome for staff and other affected parties. The decision to file for liquidation follows the placing in business rescue of a major client of the business, as well as the ongoing poor economic conditions in South Africa, which have been exacerbated by the impact of Covid-19.

“We are committed to ensuring our employees are treated fairly and that they will receive all termination rights in respect of South African labour laws. All activities are suspended with immediate effect and our premises at Lawley Street 101, Durban are closed until further notice."

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Hannes South Africa began life as an underwear manufacturer in 1970 under the name DB Apparel. It became Hannes South Africa in 2016 when the Durban company was acquired by HanesBrands Inc, a global manufacturer and marketer of underwear, for an undisclosed amount.