This followed several departures at the company this year including HR head Mary Keely, chairman Pat Hadley and former head for workwear brand Yakka Mark Daniel.
Pacific Brands cut its full year dividend by around 65 per cent earlier this week, citing continued deterioration in economic and retail conditions.
"The Board believes that maintaining a dividend of 17 per cent share is not appropriate in the current environment," it said in a statement to shareholders. "Given increased uncertainty, The Board has determined it is in the best interests of shareholders to preserve capital and repay debt."
The company, which operates brands such as Bonds, Holeproof, Hush Puppies and King Gee, would pay a dividend of 3 cents per share in the first half of fiscal 2009 and a similar amount in the second half. It would also underwrite its Dividend Reinvestment Plan for at least the next two dividends and focus on restructuring the company for improved efficiency.