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Farfetch will be sold to Coupang in deal rescue

Dec 18, 2023
Illustration of a roll of money in a life preserver.

Illustration: Aïda Amer/Axios

Farfetch (NYSE: FTCH) will be acquired by Coupang (NYSE: CPNG) after the global retailer threw the online luxury platform a financial lifeline.

Why it matters: Farfetch's troubles underscore the economic pressures that are dampening aspirational shoppers' demand

Details: Coupang will inject $500 million in capital into the company to keep the engine running.

  • The company will be fully controlled by Coupang and will be pulled from the New York Stock Exchange and taken private.
  • Greenoaks will be Coupang's investment partner in the deal, holding a 19.9% stake.
  • Farfetch CEO José Neves will stay on and Farfetch shareholders will see their investments wiped out, a source familiar tells Axios.

What they're saying: "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," Coupang CEO Bom Kim said in a statement.

Of note: Richemont's pending deal to sell a majority stake in Yoox Net-a-Porter to Farfetch and Alabbar — which European regulators green-lit in October — has been terminated as a result.

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