The hack prevented the apparel firm from fulfilling orders over three weeks in the second quarter of.
It’s evident that ransomware attacks could cause victims to pay however they impact a company’s revenue potential. For instance, apparel maker Hanesbrands estimates that it lost 100 million in sales in the in the last quarter due to an attack by ransomware.
Hanesbrands initially reported the incident in the latter part of May. On Thursday, however the company released its earnings statement(Opens in an entirely new tab) that the attack prevented it from fulfilling orders for products for three weeks in the second quarter. It was then unable to acquire new supplies or ship orders. It also made it difficult to pay for brands such as Hanes, Champion, and Playtex.
The malware was discovered on the IT systems of the clothing maker on May 24. It then caused disruption to the company’s supply chain. Ransomware typically aims to lock the entire computer fleet and make victims pay to unlock them. In order to get back from the attack Hanesbrands required re-securing its data, reconfigure crucial systems, and address the ransomware infection on a variety of computers.
It is not clear the ransomware that affected Hanesbrands and if the company actually made payment to the ransom. However, Hanesbrands declares it stopped the threat and was able to restore the IT systems of the company, however, it was required the cost of $15 million in order to deal with the disruption to supply chain.
“Despite the chaos the company still shipped all Innerwear back-to-school commitments punctually and completely,” Hanesbrands added in its earnings report.
Hanesbrands did not immediately respond to a request to comment. However, in an SEC filing(Opens in an entirely new window) the company declared: “There is no ongoing operational disruption to the ability of the company to offer its services and products.” The company that makes apparel is also planning to issue breaches with notifications as it evaluates the effects of the attack.
