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Farfetch Explores Privatization Amid Richemont Deal Hurdles

Farfetch's stock struggles could lead to a privatization. The move may help save its deal with Richemont, but many details remain uncertain.

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1 min read
There is a mobile phone. There is a qr code on the screen.
There is a mobile phone. There is a qr code on the screen.

Farfetch Explores Privatization Amid Richemont Deal Hurdles

Farfetch, the online luxury fashion retailer, is exploring a potential privatization, with its founder and CEO José Neves reportedly considering the move. This shift comes amidst a deal with Richemont that may face hurdles due to Farfetch's declining stock value. Meanwhile, Farfetch has canceled its Q3 2023 earnings report, originally scheduled for November 29.

Farfetch's privatization could be a solution to its ongoing deal with Richemont, as suggested by industry experts. Benjamin Bond of Kearney believes this move aims to reshape and energize Farfetch's business. However, Farfetch has not provided any forecasts or guidance regarding this potential shift.

Farfetch's stock value decline has raised concerns about its deal with Richemont. Wedbush analysts suggest this could lead to complications. Richemont, which has no financial obligations towards Farfetch, is currently reviewing its options regarding their arrangements.

Farfetch's Q3 earnings report, initially delayed twice, has now been canceled. The partners for the acquisition of YOOX Net-a-Porter, a key part of the deal with Richemont, have not been officially named yet. Potential partners for a private deal include Alibaba and Richemont, according to The Telegraph. Despite these uncertainties, Farfetch and Richemont have received antitrust clearance for the acquisition of YOOX Net-a-Porter.

Farfetch's privatization could potentially resolve its deal with Richemont, but the company's declining stock value and delayed earnings reports raise concerns. With partners for the YOOX Net-a-Porter acquisition yet to be officially named, and potential private deal partners speculated, Farfetch's future remains uncertain. However, the company has received antitrust clearance for the key acquisition, indicating a path forward.

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