Li Fung Tower

Li & Fung Limited, the world’s leading multinational consumer goods sourcing, logistics, and distribution group, announced last week the acceptance for review of its application to the Stock Exchange of Hong Kong for the listing of Global Brands Group.

The new standalone company is a spin-off based on the reorganization of the distribution network, to align the private label business to the trading business, while keeping a dedicated focus on the brands and licensing businesses. Some months ago, Li & Fung acquired The Licensing Company, global licensing agency managing the licensing operations of brands like The Coca Cola Company and Crhysler, and European partner of Iconix Group. Given the separate needs and different business models of Li & Fung and Global Brands Group, creating two separate companies will enable the management of each to pursue their own specific and focused strategy.

If the listing is accepted by Hong Kong’s Stock Exchange, Li & Fung will be able to concentrate on its sourcing and logistics focus, which requires sourcing skills and product development and supply chain management for retailers and brands globally. On the other hand, Global Brands Group will be able to unleash fashion-forward design capabilities and brand development, licensing, and marketing skills. If spin-off occurs, Bruce Rockowitz, now Li & Fung ltd CEO, will become Chief Executive Officer of the new entity, while Spencer Fung will assume the Chief Executive Officer role at Li & Fung.