Richemont, one of Farfetch’s shareholders, is closely monitoring the possible delisting of Farfetch, which is facing persistent financial difficulties. The declining results of the luxury goods online sales platform are raising questions about the impact of such a decision. Ongoing negotiations with shareholders, including the Swiss luxury goods giant, are fuelling speculation about Farfetch’s financial future.
Swiss luxury group Richemont, owner of iconic brands such as Cartier and Vacheron Constantin, is taking a stance on the financial difficulties of Farfetch, the online sales platform specializing in luxury goods.
Farfetch, which had expressed its intention to delist from the New York Stock Exchange due to the persistent fall in its share price since 2018, is the subject of particular attention from Richemont. The Geneva-based group had previously sold a 47.5% stake in its Yoox Net-a-Porter online retail unit to Farfetch in 2022. However, despite this transaction, Farfetch’s financial results have shown a downward trend in recent quarters.
“Richemont is closely monitoring the situation and may review its options related to the Farfetch transaction,” says a statement on Wednesday November 29. This transaction is subject to certain conditions, the group points out. “Neither the houses belonging to the Richemont group nor YNAP have yet adopted the Farfetch platform solutions and continue to operate on their own platforms”.
Rumours of financial support
Despite rumors that Farfetch would benefit from the support of investors such as Chinese giant Alibaba and Richemont itself, the Swiss group categorically denied this information, following a significant rise in Farfetch’s share price.
Farfetch founder José Neves is currently in talks with bankers and shareholders, including Richemont, regarding a possible delisting of the company. Farfetch was due to announce its third-quarter results, but cancelled this announcement, further fuelling speculation about a possible imminent deal.
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