Coupang Successfully Acquires Farfetch, Comitting to Keep the Platform’s Current Organizational Structure in Place
Coupang has announced the successful completion of its acquisition of digital luxury retail platform Farfetch, a deal that was initially revealed on December 18.
In a brief statement, Coupang emphasized that Farfetch, with access to $500 million in capital, will “continue delivering exceptional services for its brand and boutique partners,” serving over 4 million customers worldwide. The company added that, leveraging Coupang’s operational know-how and logistics, Farfetch is now “well-positioned to pursue steady and thoughtful growth.”
Coupang, a Fortune 200 company listed on the New York Stock Exchange, acquired Farfetch alongside San Francisco-based Greenoaks Capital. The purchase was part of a “pre-pack” administration process for the struggling London-based platform, which was facing profitability challenges and a cash shortage.
As a result of the Farfetch sale, all investors, including founder, CEO, and chairman José Neves, were zeroed out, placing Coupang in full control of the business.
While Coupang did not specify potential job losses on Wednesday, sources familiar with the company indicated a commitment to retaining the current management, including Neves. Reports suggested robust trading during the holiday season, with future marketing spend redirected towards “driving transactions” rather than building the Farfetch brand.
Coupang is adopting a “no-nonsense, granular approach” to understanding the Farfetch business, focusing on tightening operations. Negotiations for the sale of non-core assets in the Farfetch portfolio, such as Browns and New Guards Group, are ongoing.
Following the announcement of the acquisition, a group of major investors in Farfetch took legal action to oppose the deal, citing concerns over a lack of transparency in the acquisition process and fears of an erosion of value. The group has yet to make a statement following the finalization of the acquisition.
