Today’s news in brief-18/12/23
Farfetch is reportedly in advanced talks with a private equity-backed buyer for a last-minute rescue deal. The deal, if successful, would involve taking Farfetch off the stock market in a take-private transaction and would result in the company receiving $500m (£394m) in emergency funding. Talks are ongoing, and while Farfetch aims to announce the deal soon, there is a cautionary note that negotiations could still collapse. Last week, reports surfaced that Farfetch was in discussions with Apollo Global Management for emergency funding. The luxury retailer, which went public in 2018 with a valuation of $23bn (£18bn), currently has a market value of only $221m (£175m).
Frasers Group is reportedly engaged in detailed negotiations to acquire Matchesfashion, a fashion retailer known for selling luxury brands like Balenciaga, Gucci, and Valentino. The potential deal is expected to be completed within days, with the acquisition cost likely to exceed £50m. Matchesfashion’s private equity backer, Apax Partners, has invested up to £600m in the brand. Other firms, including Next, have also shown interest in acquiring Matchesfashion.
Boots is planning to launch a ChatGPT-powered ‘personal shopper’ tool on its website to enhance online sales. The AI chatbot is currently in the testing phase, focusing on beauty product recommendations. Boots aims to deploy the tool widely after Christmas, marking a significant move in its partnership with Microsoft, the distributor of ChatGPT. The initiative reflects Boots’ strategy to revitalise its position as a retail pioneer, leveraging technology to enhance customer experience. The company is working to overcome years of underinvestment and financial challenges.
Adidas has appointed Michelle Robertson as an executive board member, responsible for global human resources, people, and culture, effective from January 1. A veteran with over 18 years of experience at Adidas and previously Reebok, Robertson has been leading global human resources on an interim basis since July 2023. The move is seen as a positive development to strengthen Adidas’ position as a leading employer globally. Robertson’s profound HR expertise, commitment to employee well-being, and passion for the brand align with Adidas’ goals. The company expresses optimism about further enhancing its workplace as a diverse and inclusive environment under Robertson’s leadership.
