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E-retailer Farfetch has officially been bought by one of South Korea’s leading retailers, Coupang. The new deal will give Farfetch access to $500 million worth of capital to “continue providing exclusive brands and boutiques with bespoke, cutting-edge technology and giving leading designers access to consumers around the globe,” according to a press release. Global investment firm Greenoaks is Coupang’s investment partner in the acquisiton. The agreement comes amid ongoing financial troubles for Farfetch and will help the company avoid bankruptcy after reportedly losing 97% of its market value over the last two years.
“Coupang’s proven track record and deep experience in revolutionizing commerce will enable us to deliver exceptional service for our brand and boutique partners, as well as for our millions of customers around the world,” said José Neves, Farfetch Founder, CEO and Chairman in a statement. “We are thrilled to be partnering with such a respected Fortune 200 company that is committed to investing in innovations that transform all aspects of the customer experience with Farfetch.”
As a result of the deal, Farfetch’s 2022 acquisition of a 47.5% stake in Yoox-Net-a-Porter has reportedly been terminated. The company will be taken off the New York Stock Exchange and be taken private.
Farfetch also maintains a $200 million stake in Neiman Marcus and holds other assets like Browns and Stadium Goods — of which the financial and contractual states are unclear.
“Farfetch is a landmark of the luxury landscape and has been a transformative force in demonstrating that online luxury is the future of luxury retail,” Bom Kim, Founder & CEO of Coupang said in a statement. “Farfetch will rededicate itself to providing the most elevated experience for the world’s most exclusive brands, while pursuing steady and thoughtful growth as a private company. We also see tremendous opportunities to redefine the customer experience for luxury clients everywhere.”
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Source: Fashionista.com
