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The owner of luxury fashion site Farfetch, José Neves, is reportedly planning on taking the company private just five years after it floated on the New York Stock Exchange, according to The Telegraph.
Since its listing in 2018 Farfetch has seen 90% of its value wiped out, as such Neves is said to be in talks with advisers JP Morgan and shareholders about returning the business private.
Neves currently owns a 15% stake in the business but holds 77% of the voting rights through a dual-class share structure.
The Telegraph also revealed that the move is thought to have preliminary backing from shareholders including Richemont, which announced a tie-up with the firm through its brand YNAP, and e-commerce giant Alibaba.
It comes as Farfetch released an update that it would delay the release of its third quarter results scheduled for today (Wednesday, November 29, 2023) and that the company expects to provide a market update in “due course”.
Earlier this year Farfetch revealed its revenues decreased to $572.1m (£450.1m) from $579.3m (£455.7m) during Q2 2023, representing a year-over-year decrease of 1.3%.
The group said that the decline was primarily driven by a 42.2% decrease in Brand Platform Revenue to $67.4m (£52.96m), as well as a 15.1% decrease in In-Store Revenue to $22.7m (£17.84m).
