Liz and Li & Fung complete long-term Buying Agency Agreement
01 Apr '09
1 min read
Liz Claiborne Inc announced the completion of its long-term, exclusive Buying Agency Agreement with Hong Kong-based global consumer goods exporter Li & Fung Limited. Li & Fung now acts as the primary global apparel and accessories sourcing agent for all brands in the Liz Claiborne Inc.
portfolio, including Lucky Brand, Juicy Couture, Kate Spade, and Isaac Mizrahi-designed Liz Claiborne New York with the exception of the jewelry product lines. Li & Fung will continue as the sourcing agent for Mexx as previously announced and will be Mexx's exclusive sourcing agent. Going forward, Liz Claiborne Inc. will pay an agency commission on its product purchases through Li & Fung.
Pursuant to the arrangement, Li & Fung has paid to Liz Claiborne Inc. an amount equal to US$75 million and will pay an additional amount not exceeding US$8 million by April 14. Consistent with its operational focus on managing cash flow and liquidity, the company will use the proceeds of this transaction to pay down bank debt.
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