Farfetch Think about it Browns sale. According to WWD, the company founded by José Neves is studying the possibility of getting rid of the business acquired in 2015 to eliminate doubts about its profitability. Farfetch would also have discussions with shareholders about this Stop trading on the New York Stock Exchange five years after his debut on the floor. Its founder José Neves works with JP Morgan for the operation.
The same sources indicate that the group has also held discussions with Richemont, the owner of the Cartier jewelry store; with whom Farfetch has an agreement. However, Richemont has assured that it does not plan to borrow or invest in Farfetch.
Farfetch’s financial problems, whose share price has fallen sharply in recent months, have raised questions about the deal Farfetch’s acquisition of a 47.5% stake in Yoox Net-A-Porter (YNAP) in exchange for the issuance of Farfetch Class A common stock to Richemont. The European Commission recently commented openly on this ruling and concluded that the transaction did not raise competition issues.
Farfetch financial difficulties
Despite the EU’s approval, the agreement was complicated by the uncertainty surrounding it. Mainly due to the financial difficulties Farfetch has suffered The value of its shares has fallen by 90% in recent yearswhose market capitalization has increased from $26 billion to just over $1 billion.
On the luxury fashion platform, however, U.S. retailers have cut orders and more inventory is coming from brands rather than wholesale customers. This limits your ability to attract buyers with promotions. The company is currently not commenting on the matter, but will be at the end of November has suspended the presentation of its third quarter financial results.