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The Swiss group’s announcement<\/strong> comes after South Korean e-commerce giant Coupang<\/strong> said earlier on Monday that it was considering buying online retailer Farfetch, giving the platform $500 million ($457 million) to continue its business.<\/p>\n <\/p>\n An agreement to this effect was reached with a group of investors who held over 80% of Farfetch’s outstanding term loans, by Coupang, accompanied by investment company Greenoaks<\/strong>. Farfetch was advised by JPMorgan.<\/p>\n <\/p>\n Coupang, listed on the New York Stock Exchange<\/strong>, is one of the world’s leading e.commerce companies. It has developed food delivery, video streaming and payment services in Asia (South Korea, Taiwan, Singapore, China and India).<\/p>\n <\/p>\n “Farfetch will rededicate itself to providing the highest experience for the world’s most exclusive brands,<\/em>” Coupang founder and CEO Bom Kim said in a statement. He also said that its expertise in logistics, combined with Farfetch’s experience in selling high-end brands, would enable it to expand in South Korea, a buoyant market for luxury goods<\/strong>.<\/p>\n <\/p>\n <\/p>\n For its part, Richemont had agreed last year to sell Farfetch a 47.5% stake in Yoox Net-A-Porter<\/strong>, with the option for the listed platform to purchase 100% of the shares at a later date.<\/strong><\/p>\n <\/p>\n The agreement also called for Dubai Mall developer Mohamed Alabbar to take a 3.2% stake in Farfetch through his Symphony Global investment vehicle<\/strong>.<\/p>\n <\/p>\n “Due to the contemplated transaction announced by Farfetch on December 18, 2023, the agreements announced in August 2022 cannot be completed<\/em>” Richemont said on Monday.<\/p>\n <\/p>\n “Consequently, Richemont, Farfetch and Symphony Global, one of Mr. Mohamed Alabbar’s investment vehicles, have terminated the agreements<\/em>” .<\/p>\n <\/p>\n Richemont explains that it will reassess the options for YNAP “in order to best exploit its strengths and potential under new management<\/em>“.<\/p>\n <\/p>\n The Swiss group is now considering other options for powering the e-commerce of its Houses<\/strong>, noting that they continue to operate today with their own technology. Richemont owns some twenty luxury brands, mainly in watch and jewelry (Cartier, Van Cleef & Arpels…) but also in fashion (Chlo\u00e9, Azzedine Alaia…) and writing instruments (Montblanc).<\/p>\n <\/p>\n <\/p>\n Richemont has lost some feathers in the Farfetch operation<\/strong>: it expects not to be repaid a $300 million loan granted to the platform at the end of 2020.<\/p>\n <\/p>\n Long considered an outstanding e.commerce success story, Farfetch, founded in 2008 by Portuguese entrepreneur Jos\u00e9 Neves<\/strong>, has lost its lustre. The post-covid downturn in e-commerce and the recent slowdown in the luxury goods market in China and the USA have accelerated its decline.<\/p>\n <\/p>\n The platform is not alone in its difficulties.<\/strong> According to Miss Tweed media, the takeover of Matchesfashion, the British premium fashion e-retailer, by British retailer Frasers is about to be announced. The Frasers group has reportedly offered only around \u00a380 million<\/strong> to its current owner, the private equity firm Apax Partners. Apax Partners had lined up \u00a3780 million to acquire Matchesfashion in 2017…<\/p>\n <\/p>\n Read also > Richemont: Potential Farfetch delisting discourages investment – Luxus Plus (luxus-plus.com)<\/a><\/p>\nSale of Yoox Net-\u00e0-Porter abandoned<\/h2>\n
A $300 million loan abandoned<\/h2>\n