admin Luxury e-commerce giant Farfetch is reportedly mulling a potential offer that would delist the company and take it private, as pressure on stock remains persistent.
Such a move is speculated to happen very soon, according to The Telegraph which initially reported the news. While Farfetch had declined to comment on the report, the company later announced that it would be delaying the publication of its third quarter results, which had been scheduled for Wednesday.
Chief executive José Neves is understood to be in talks with bankers and shareholders about the possibility of a delisting, which would bring its place on the New York Stock Exchange to a swift end.
Since initially listing in 2018, Farfetch shares have plummeted 80 percent.
The news comes just one month on from the announcement that antitrust regulators in Europe had approved Farfetch’s decision to acquire a 47.5 percent stake in Yoox Net-a-Porter (YNAP) from luxury conglomerate Richemont.
Richemont confirms it won’t invest
The sale would make YNAP a neutral platform with no controlling shareholder, and would see it potentially switch to Farfetch Platform Solutions as part of the retailer’s Luxury New Retail vision.
However, with the latest reports, such a deal has been thrown into doubt, leading Richemont to make a statement of its own on the speculation.
The group, which also owns the likes of Cartier, Chloé and Montblanc, confirmed that it currently does not have financial obligations towards Farfetch, further adding that “it does not envisage lending or investing” to the firm.
Richemont noted that it would be monitoring the situation, including “reviewing its options in respect of its arrangements with Farfetch”, as the acquisition remains subject to certain terms and conditions.
Additionally, it was confirmed that YNAP has currently not adopted Farfetch Platform Solutions, with the retailer continuing to operate on its own platform.
