Coupang just came to rescue Farfetch

December 18, 2023 09:56 AM PST | By Invezz

Coupang just came to rescue Farfetch — Image source: Invezz

Farfetch will get emergency funding

The agreement includes $500 million in emergency funding that Farfetch will receive from Coupang to continue its operations.

Greenoaks has partnered with the New York listed firm for the said investment in Farfetch. Bom Kim – the Chief Executive of Coupang said in a press release today:

We see tremendous opportunities to redefine the customer experience for luxury clients everywhere.

Note that Farfetch Ltd has been struggling with a decline in revenue that printed at $572 million – down about 1.3% in its latest reported quarter. Wall Street currently has a consensus “hold” rating on shares of the London-based company.

Watch here: https://www.youtube.com/embed/_5doLoi2UBQ?feature=oembed

Farfetch was running risk of default

Farfetch Ltd says it would have failed to “continue as a going concern” without the lifeline it received from Coupang on Monday.

The eCommerce company will be liquidated and delisted from the New York Stock Exchange following the aforementioned acquisition – and its shareholders will not recover their outstanding investments.

Also on Monday, Richemont cited the Coupang news and announced termination of an agreement that entailed “sale of a majority stake in YNAP to Farfetch and Symphony Global”.

$FTCH Taking it from the top on Farfetch: these are my thoughts on the situation currently.

1) The cash is still there. No accounting fraud or scandal. 2) Nothing crazy happened during the quarter, in terms of losses or cash outflow. 3) Richemont has abandoned ship one way or…
— Philoinvestor (@philoinvestor) December 17, 2023

Coupang Inc had over $5.0 billion in cash and equivalents (including restricted cash) at the end of its third financial quarter. Its shares are down close to 5.0% at writing.

The post Coupang just came to rescue Farfetch appeared first on Invezz

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