Home / Knowledge / News / Apparel/Garments / G&K Services divests direct sale program business
G&K Services divests direct sale program business
Jan '14
G&K Services, Inc announced that it has sold its direct sale program business. Separately, the company also divested its operation in Ireland, which was the company’s last remaining clean room business. Total proceeds from the sales were $6.6 million.
These transactions mark the completion of G&K’s restructuring efforts that began in 2009. Since that time the company has divested several non-core business units that did not fit its long-term strategy.
“These divestitures allow us to place even greater focus on our rental and direct sale catalog operations, where we see the company’s greatest opportunity for future growth,” said Douglas A. Milroy, Chief Executive Officer. “Looking ahead, we expect these transactions will improve G&K’s overall profit margins and return on invested capital and will move us another step closer to achieving the goals of our 12+ Plan.”
While the company is divesting its direct sale program business, G&K will continue to operate its direct sale catalog business, which provides a large selection of in-stock, ready-to-ship casual apparel, work-wear, outerwear, safety gear, and other products to meet the needs of its customers. 
As a result of the transactions, G&K will recognize aggregate non-cash charges of approximately $13 million before taxes. In fiscal year 2013, these business units contributed total annual revenue of $42 million and adjusted operating income of approximately $500,000.
The company expects the divested businesses will be treated as discontinued operations in future financial reports. The company plans to update its fiscal year 2014 revenue and earnings guidance in conjunction with its second quarter earnings release, which is scheduled for January 28, 2014.
About G&K Services, Inc.
G&K Services, Inc. is a service-focused market leader of branded uniform and facility services programs in the United States, and is the largest such provider in Canada. Headquartered in Minneapolis, Minnesota, G&K Services has nearly 7,800 employees serving approximately 170,000 customers from 165 facilities in North America. 

G&K Services

Must ReadView All

Apparel/Garments | On 26th Oct 2016

SGS develops 4C chemical management model for apparel

SGS, a leading inspection, auditing, certification, testing, and...

Textiles | On 26th Oct 2016

Whitehouse & URI Business Centre start RI textile network

Senator Sheldon Whitehouse and the University of Rhode Island...

Textiles | On 25th Oct 2016

Arvind to dilute 10% stake in brand business arm

Arvind Limited, one of India’s largest integrated textile and apparel ...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search