The Departure Comes Amid Major Shakeups Following Coupang Acquisition
José Neves, the founder and CEO of Farfetch, is set to step down from his position.
This announcement comes shortly after the completion of the acquisition deal between Farfetch and South Korean e-commerce firm Coupang. Neves’ departure raises uncertainties regarding the future trajectory of Farfetch under its new ownership. Alongside Neves, several other high-ranking executives, including the Chief Financial Officer, Chief Product Officer, Chief Platform Officer, Chief Marketing Officer, and Chief Operations Officer, will also be leaving the company.
In the interim period, Coupang’s CEO, Bom Kim, along with a team of remaining Farfetch executives, will lead the company.
Neves established Farfetch in 2007 with the aim of linking multi-brand luxury boutiques’ inventories to its e-commerce platform. Under his leadership, Farfetch pursued an ambitious expansion strategy, acquiring entities such as department store Browns, brand incubator New Guards Group, and sneaker resale site Stadium Goods.
The acquisition by Coupang was initially announced in December, following Farfetch’s securing of a $500 million bridge loan from the South Korean e-commerce giant, thereby narrowly avoiding bankruptcy.
However, Farfetch has encountered mounting challenges since the acquisition deal with Coupang was finalized.
Several of Farfetch’s partners have begun to sever ties. Neiman Marcus Group, for instance, announced the abandonment of plans to utilize Farfetch’s e-commerce software unit, Farfetch Platform Solutions, for revamping Bergdorf Goodman’s online presence. Similarly, Kering terminated its contract with Farfetch, leading to the phasing out of brands like Gucci, Balenciaga, and Saint Laurent from the e-tailer’s marketplace in the second quarter of the year.
