Days after Coupang completed its takeover of the British online retailer, Farfetch is facing a winding-up request from disgruntled shareholders who allege that founder José Neves “destroyed” the company’s value to push through the takeover bid, according to a new report.
According to British newspaper The Telegraph, Farfetch owes the group of creditors $400 million, a sum that could potentially be eliminated through the takeover.
As a result, shareholders have now reportedly filed a winding-up application in the Cayman Islands, alleging “serious deficiencies” in corporate governance and accusing Farfetch’s management of taking “unjustified value-destroying steps.”
In light of these allegations, the group has now called for the appointment of a liquidator and an investigation into the behavior of Neves, who was accused of striking a deal to sell the company in return for remaining at the helm. This is said to have happened at the expense of the company and its stakeholders.
Investor pressure came to a head at the end of January, a few days before the South Korean company Coupang completed its acquisition of Farfetch for $500 million. The deal was described by the group as a “fire sale” and came just four months after the company reported liquidity of over $800 million.
This translated post previously appeared on FashionUnited.uk