There was a new twist on Monday in the struggle over the future of financially troubled online fashion retailer Farfetch Limited. E-commerce specialist Coupang Inc. announced that it will acquire Farfetch’s business activities and assets together with an investment partner.
A corresponding agreement has already been signed with Farfetch and the most important creditors of the heavily indebted company, according to a statement. For the purpose of the planned takeovers, Coupang has already founded a company called Athena Topco LP together with the financial house Greenoaks Capital Partners LLC. Financial details of the proposed deal were not disclosed.
In the event of the takeover, Farfetch will receive fresh capital of $500 million
If the transaction succeeds, Farfetch would receive a much-needed cash injection. Coupang will provide the London-based company with fresh capital totaling 500 million US dollars (458 million euros) through a bridge loan, explained the prospective buyer.
Coupang was founded in 2010 in the South Korean capital Seoul and has since established itself as a leading online retailer in its home market. The group, which has now moved its headquarters to the US metropolis of Seattle, has been listed on the New York Stock Exchange since 2021.
In the last financial year of 2022, the group increased its sales by twelve percent (+26 percent adjusted for currency effects) to $20.6 billion, but had to accept a net loss of $92 million. However, the company is in the black this year.