Farfetch Rescued by Coupang in $500 Million Deal
Originally Published 2 years ago — by The New York Times
Luxury e-commerce platform Farfetch has secured a $500 million lifeline from South Korean e-commerce retailer Coupang, preventing it from going bankrupt. Farfetch, once valued at over $23 billion, has faced financial struggles due to high costs, debt, risky investments, and a slowdown in the luxury market. The deal with Coupang will result in Farfetch shares being delisted and existing shareholders being wiped out. Farfetch will continue to operate under new ownership, with founder and CEO José Neves remaining in an unspecified role. The acquisition terminates Farfetch's agreement to buy a stake in rival Net-a-Porter from Richemont.