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HONG KONG, China — Li & Fung Ltd. is working with Citigroup Inc. to spin off its brands business, valued at about $2 billion, people with knowledge of the matter said.
The world’s biggest supplier of clothes and toys to retailers such as Wal-Mart Stores Inc. and Kohl’s Corp. plans to list the division on Hong Kong’s stock exchange and would also consider selling the unit, named Global Brands Group, if it gets an attractive offer, said the people. They asked not to be identified because the deliberations are private.
Li & Fung, based in Hong Kong, said last month it plans to spin off the licensing and brand business, whose products include Coach Inc. shoes, to focus on its core business, which sources and manages the supply chain for retailers. The company's shares posted their biggest one-day gain in more than five years after the announcement.
Spokesmen for Li & Fung and Citigroup declined to comment.
Global Brands Group manages more than 300 licensed brands including belts from Michael Kors Holdings Ltd. and some Juicy Couture clothing.
By Jodi Xu, Zijing Wu; Editors: Philip Lagerkranser, Mohammed Hadi, Elizabeth Wollman
