FT article12 Feb 2019 19:58
Hong Kong trading company Li & Fung to develop a strategic sourcing partnership. Expected to cover a material part of the company’s own-brand sourcing, Debenhams said this would result in improved product quality and lead times, higher margins and better working capital efficiency.
Hong Kong listed Li & Fung is a much larger company than Debenhams and has a stronger credit rating. Tony Shiret, analyst at Whitman Howard, said in a note to clients that this scale could be important if, as expected, Debenhams moves to close stores, thus reducing its own scale and buying power. “It may also be seen as confirmation that a serious global sourcing operator does not regard Debenhams as a write-off.”
https://amp.ft.com/content/5df4ea06-2e94-11e9-8744-e7016697f225