Farfetch seeks last-minute rescue deal
The deal would reportedly lead to Farfetch receiving $500m (£394m) of emergency funding
Farfetch is reportedly looking to secure a last-minute rescue deal with a private equity-backed buyer, according to The Sunday Times.
Whilst the buyer’s identity is unclear, The Times reported that advanced talks are in place over a deal to take the online retailer off the stock market in a take-private deal.
The deal would reportedly lead to Farfetch receiving $500m (£394m) of emergency funding.
Sources told The Sunday Times that Farfetch was aiming to announce the deal today (18 December) but “warned that talks could yet fall apart”.
Last week, it was reported that Farfetch entered talks with Apollo Global Management to secure emergency funding in a bid to rescue the group.
According to Sky News, Apollo was one of a “number of firms” in talks with the group, with sources adding a deal was far from being reached, and that it was not yet clear how much funding is needed.
According to sources, it was also unclear whether the new capital would be provided as debt or equity, or both.
The news comes shortly after reports emerged that Farfetch founder Jose Neves was in talks to take the public company private.
The luxury retailer first floated in 2018 and was at one stage valued at $23bn (£18bn), yet last week it had a market value of only $221m (£175m).
Farfetch has been approached for comment.
