Hudson’s Bay in Sourcing Deal with Li & Fung

HONG KONG—Li & Fung Limited announced a sourcing deal today with Hudson’s Bay Company and its four retailers: Lord & Taylor, The Bay, Home Outfitters and Zellers.

The deal, which the two firms are calling a “global sourcing strategic partnership,” calls for the consolidation of Hudson’s Bay Company’s sourcing needs into one North American “shared services group.”

Hudson’s Bay CEO Jeff Sherman explains: “The signing of buying agency agreement with Li & Fung complements our shared services strategy to consolidate and align global sourcing needs into one group for all of our banners. By partnering with the world’s leading consumer goods sourcing company, we will be able to leverage Li & Fung’s scale and expertise.”

Li & Fung (Trading) Company president Bruce Rockowitz added, “We are delighted to see the execution of this outsourcing deal with one of the oldest companies and one of the leading retail groups in North America. We are very excited about this strategic relationship as the four main retail banners are well-established and we see great potential in them. With our strong network of offices in over 40 economies, we are confident that we will be able to contribute to the long term success of Hudson’s Bay Trading Company in North America.”

Hudson’s Bay Company was acquired by NRDC Equity Partners, the owner of Lord & Taylor, in July, 2008. NRDC’s retail operations were consolidated into one North American unit, led by CEO Jeff Sherman, a former retail executive for Polo Ralph Lauren.

Li & Fung recently acquired Wear Me Apparel, a U.S.-based young men’s and kids apparel company.

Related story: Fortune has a profile of William and Victor Fung, the brothers who run Li & Fung, today; read it here.