COUPANG PURCHASES ONLINE RETAILER FARFETCH
Yesterday global retailer Coupang, Inc., purchased online retailer Farfetch. According to reports the South Korean ecommerce giant provided 500 million dollars to boost liquidity, preventing the company from going out of business. The company has abandoned a plan to buy a stake in Yoox-Net-A-Porter.
Farfetch’s board of directors have all resigned, leaving founder José Neves as the sole board member. Athena Topco will commit to funding the Bridge Loans (subject to customary drawdown conditions) on an as-needed basis to fund FF PLC’s and its direct and indirect subsidiaries’ ordinary course working capital, operations, and/or expenses per an agreed financial plan.
“Farfetch is a landmark of the luxury landscape and has been a transformative force in demonstrating that online luxury is the future of luxury retail. 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. We also see tremendous opportunities to redefine the customer experience for luxury clients everywhere,” Bom Kim, founder and CEO of Coupang, said in a press release.
“Coupang’s proven track record and deep experience in revolutionizing commerce will enable us to deliver exceptional service for our brand and boutique partners, as well as for our millions of customers around the world,” said José Neves, Farfetch founder, CEO, and chairman. “We are thrilled to be partnering with such a respected Fortune 200 company that is committed to investing in innovations that transform all aspects of the customer experience with Farfetch.”
