Three former Farfetch managers are said to be involved in a dispute before the Higher Court of England and Wales. It is about allegations of “serious mismanagement”, which are raised by the insolvency administrators of the luxury fashion e-commerce company.
Farfetch founder José Neves, former President Stephanie Phair and the former CFO Elliot Jordan, according to the daily newspaper The Times, are at the center of an investigation into the circumstances that led to the failure of the company. This emerges from court documents.
According to the report, the case was strained by the bankruptcy advisory company Alvarez & Marsal against the executives mentioned, which question the “rapid and drastic deterioration of the company’s finances”. The managers are also accused of not responding to requests for documents on a voluntary basis that Alvarez & Marsal describes as “critical” for the ongoing investigation.
The consulting company also calls for an investigation to sell Farfetch to Coupang, which the company acquired in a fast 396 million pound pre-pack administration deal. This included a considerable bridge loan that helped Farfetch to avoid bankruptcy.
In the run -up to the procedure, many borrowers had a decline in the value of their shares by up to 99 percent since 2022, although the company had had a strong business development in previous years.
In the court documents, Alvarez & Marsal claims that the company “had practically depreciated over a billion US dollar in debt claims that had been used by group-internal loans” and “have effectively lost its ownership and its interests in the entire Farfetch business-and that without a public explanation, although the company and its directors had publicly declared in August 2023 that the company was financially in good condition is “.
Neither Alvarez & Marsal, Farfetch nor Neves responded to this matter to inquiries from The Times.
This article previously appeared on fashionunited.fr and was used with the help of digital tools translated.
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