Li & Fung in talks to take over Primark supplier

The Hong Kong-based global supply management group is looking to acquire May Trading UK, the company that supplies British brands like Primark, Topman and Next. According to a report by Drapers magazine, the two companies are currently in talks to discuss a possible takeover.

According to the report, Li & Fung is said to have been interested in a possible acquisition since May Trading went bankrupt in October, following difficulties at its British factory.

Li & Fung, which generated revenues of 8.7 billion dollars (5.6 billion pounds) in the first six months of this year, is the world's largest supplier of clothes and toys to retailers. It recently spun off its brands management unit, Global Brand Group, which manages over 350 licenses for brands like Coach, Tommy Hilfier, Calvin Klein and Guess, to focus on its core supplier business.