Farfetch's Ambitions Frustrated as Moody's Downgrades Credit Rating and Apollo Rescue Deal Talks Begin
Farfetch, an e-commerce pioneer for luxury goods, is facing challenges as European luxury brands seek greater control over their products and distribution. Brands like Chanel, Hermes, and LVMH are opting to control all aspects of selling their products, including pricing and brand positioning, which reduces the reliance on third-party retailers like Farfetch. This trend, coupled with a slowdown in luxury demand in China and the US, has led to Farfetch's deteriorating financial position and a downgrade in its credit rating. The company is exploring options including a sale, and its founder is considering taking the company private.