South Korean retailer Coupang buys Farfetch – Kommersant
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South Korean online retailer Coupang announced on the purchase of the assets of the British online retailer Farfetch, specializing in luxury goods. Coupang will provide Farfetch, which has recently faced serious financial problems, with $500 million. After completion of the transaction, Farfetch will become a private company.
Farfetch’s valuation has fallen more than 95% since its IPO five years ago. At the peak of its success, the company was worth $24 billion. Lately, Farfetch had accumulated debts and was on the verge of bankruptcy. At the end of November, the company announced that it would not publish third-quarter results. Then the media wrote that Farfetch could be bought out by the retailer’s founder, Jose Neves.
Farfetch shares fell nearly 40% in over-the-counter trading on Monday before the New York Stock Exchange suspended trading. Coupang shares fell 3.5% after the deal was announced.
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