Li Feng 400 million US dollars acquisition of CK and other clothing agency returns or up to 19%
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June 28, 2025
In the future, if you want to purchase CK (Calvin Klein) clothing, you may have to go through Hong Kong-based Li & Fung. The company has recently made a major move by acquiring most of the assets of Wear Me Apparel in the U.S., a deal valued at up to $401.8 million. This marks Li & Fung’s largest acquisition in over a decade, highlighting its growing influence in the global fashion supply chain.
Wear Me Apparel specializes in men’s and children’s apparel in the U.S., managing a wide range of brands, including Calvin Klein, Ecko, Hurley, US Polo Association, and Disney. With this acquisition, Li & Fung will take control of not only the design and sales of children’s wear but also the distribution of these key labels across the U.S. market.
The deal has been praised by DBS Vickers, a Hong Kong-based brokerage firm, which called it “an ideal transaction.†In 2008, Wear Me generated around $700 million in revenue with a net profit of $12 million, and it currently has no negative equity. Analysts believe this acquisition will help Li & Fung expand its brand portfolio and strengthen its presence in the U.S., where it already manages several major fashion brands like Roots and GANT.
According to Feng Guofeng, Managing Director of Li & Fung Group, the company is focusing on expanding its operations in North America and Europe, as well as its supply chain business. “We aim to increase our U.S. revenue significantly,†he said, adding that the goal is to reach $3 billion in local business turnover by the end of next year.
Li & Fung has been actively acquiring companies in recent years. In 2008 alone, it completed seven acquisitions, including brands like Imagine and Silvereed. More recently, it acquired the Asian sourcing business of Liz Claiborne for $83 million and became the exclusive sourcing agent for Talbots, a leading U.S. women’s fashion retailer.
With a strong financial background—its operating income reached HKD 100 billion in 2007—Li & Fung is leveraging the current economic environment to grow through strategic acquisitions. Le Yumin, President of Li & Fung Group, noted that when asset prices stabilize, it’s an ideal time to pursue new deals. He added that the company is currently evaluating several large U.S.-based businesses, with potential acquisitions worth billions of dollars on the horizon.
These moves are not just about growth—they’re about securing more influence in global retail trade while refining its existing brand mix and private label offerings. As the fashion industry continues to evolve, Li & Fung is positioning itself as a key player in shaping the future of global apparel distribution.