Australian clothing and footwear company Pacific Brands has announced that CEO Sue Morphet will step down after the company booked widening full-year net losses. The company said that Morphet will be replaced by former Fosters CEO John Pollaers, effective 3 September.

The announcement came as the company recorded an A$450.7m full year net loss, widening on the $131.9m loss recorded in the prior year. It attributed the losses $502.7m in non-cash write-downs of goodwill, including $114m in the second half, relating to home wares and work wear. Sales fell 18% over the year to $1.3bn. Excluding the loss of a contract with retailer Kmart, sales fell 4.3% over the year.

EBIT before significant items fell 30.7% to $129.1m, with Morphet emphasising that it was at the high end of its guidance of $125-130m.

Company chairman Peter Bush said that Morphet has driven a “transformational restructuring of Pacific Brands”, taking the business from having “well over 300 brands and a significant brands and a significant debt load to being the consolidated, key brand-focused, comparatively low-debt company it is today”.

Bush added that Pollaers brings a “different set of skills and experience” to the company. ”John is well known in Australia and internationally for his ability to motivate and build confidence in his teams. He sets clear strategic directions, focuses on operational delivery and brings a strong commercial conscience. John has a terrific record of managing and building great brands and the board welcomes his enthusiasm for Pacific Brands,” said Bush.