Liz Claiborne Enters Sourcing Agreement
Liz Claiborne Inc. agrees to enter into a long-term, exclusive Buying Agency Agreement whereby Hong Kong-based global consumer goods exporter, Li & Fung Limited, will act as the primary global apparel and accessories sourcing agent for all brands in the Liz Claiborne Inc. portfolio. The agreement will source brands 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. Completion of the arrangements is expected to take place in the first quarter. Liz Claiborne Inc. will pay going forward an agency commission of its product purchases through Li & Fung.
William McComb, CEO of Liz Claiborne Inc., comments, "Liz Claiborne Inc. was one of the first apparel companies to source product in Asia, building a robust, global sourcing organization that quickly became a competitive advantage that was leveraged for many years. The manufacturing world has changed dramatically in recent years with the elimination of quota and other globalization factors. Liz Claiborne Inc. is now changing as well...In addition, our experience with Li & Fung from Mexx Canada and more recently Mexx Europe validates that an organization like this will intensify our ability to execute our brand-centric strategy."
William McComb, CEO of Liz Claiborne Inc., comments, "Liz Claiborne Inc. was one of the first apparel companies to source product in Asia, building a robust, global sourcing organization that quickly became a competitive advantage that was leveraged for many years. The manufacturing world has changed dramatically in recent years with the elimination of quota and other globalization factors. Liz Claiborne Inc. is now changing as well...In addition, our experience with Li & Fung from Mexx Canada and more recently Mexx Europe validates that an organization like this will intensify our ability to execute our brand-centric strategy."