Blog: Li & Fung sets sights on Europe

Joe Ayling | 1 March 2010

Sourcing giant Li & Fung further strengthened its own portfolio at the end of last week, when it acquired private-label apparel supplier Visage Group.

The deal is a further sign of Hong Kong-based Li & Fung's intention to grow a stable of worldwide businesses in addition to its sourcing activities for major brands and retailers.

It follows recent acquisitions of US-based children's wear maker Wear Me Apparel and handbag importer Van Zeeland.

That is not to say Li & Fung is letting up on sourcing by any means, having inked important supply chain deals with US retailers including The Talbots, Hudson's Bay, Liz Claiborne and Wal-Mart in the past year alone.

Li & Fung will pay up to GBP173m (US$264m) for UK-based Visage, which designs, imports and distributes fashion wear.

Visage, which operates in Manchester, employs over 500 people and in 2009 posted 16% turnover growth to GBP190m for the full fiscal year. It also has branches in Shanghai, Guangzhou, Dhaka and Delhi, aligning it well with Li & Fung's existing global network.

More importantly though, the Visage acquisition fits with Li & Fung's strategy of boosting its onshore presence in Europe. "This acquisition dramatically strengthens LF Europe's growth platform," says Li & Fung president Bruce Rockowitz.

Meanwhile, global retailer Gap Inc also announced investments in a European market last week, planning its first stores in Italy. The foray will see Gap and Banana Republic flagship stores open side by side in Milan this year.

By Joe Ayling, news editor.




BLOG

Bangladesh safety gaps still remain

As the apparel industry prepares to mark the fifth anniversary of the Rana Plaza factory building tragedy, a new report estimates it could cost US$1.2bn to complete remediation across Bangladesh's rea...

BLOG

Concern mounts over Trump's trade policies

Since President Donald Trump took office in January 2017, his administration has been busy fulfilling major campaign promises on trade policy – much to the concern of US fashion brands and apparel ret...

BLOG

Jeans makers eye innovation to regain market share

just-style’s latest weekly roundup begins with a look at how jeans makers are innovating and adapting to evolving consumer needs and the impact of athleisure with new fabric innovation and more sustai...

BLOG

Trump's tariffs threaten textile trade

With tariff discussions looming over the White House, just-style’s news and analysis last week was not surprisingly dominated by talk of a possible trade war....

just-style homepage



Forgot your password?