The agreements transform the current non-exclusive buying agency agreement between them into a new strategic partnership in connection with which Li & Fung will provide additional value-added services to PVH. The agreements also provide for the ending of the existing non-exclusive buying agency agreement between them. The transaction is expected to close on July 1.
The new supply chain relationship is expected to be mutually beneficial to both companies and will focus on applying the latest technology and know-how into the PVH supply chain.
“Our focus is to create a more effective and efficient supply chain that will enable us to adapt and evolve so we can stay ahead in our rapidly changing industry,” said Daniel Grieder, CEO Tommy Hilfiger Global and PVH Europe. “This transformation in our sourcing strategy is an important step in our initiative to improve speed to market and for the faster integration of consumer insights into our new collections.”
Spencer Fung, group chief executive officer of Li & Fung added: “We’ve had a long-standing relationship with PVH and we’re excited to continue building on that under this new strategic partnership where we’ll have an opportunity to create what we see as the Supply Chain of the Future.”