Farfetch acquired by Coupang in $500m rescue deal
Coupang negotiated the deal with a group of debtholders who held most of a term loan that was owed by Farfetch
South Korean ecommerce group Coupang has agreed to acquire Farfetch, which had been seeking a rescue deal in recent weeks, The Financial Times has reported.
The rescue deal, which also involves Greenoaks Capital Partners, will see Farfetch receive a $500m (£394m) bridge loan to help it continue operating.
Coupang negotiated the deal with a group of debtholders who held most of a term loan that was owed by Farfetch, according to a Securities and Exchange Commission filing.
The London-headquartered business is expected to be acquired through a pre-pack administration process.
Bom Kim, chief executive of Coupang, said: “Farfetch will rededicate itself to providing the most elevated experience for the world’s most exclusive brands, while pursuing steady and thoughtful growth as a private company.”
Earlier this week, it was first reported that Farfetch was looking to secure a last-minute rescue deal with a private equity-backed buyer.
Last week, it was also 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).
