Farfetch has been sold to South Korean ecommerce giant Coupang, which has agreed to pump $500m in emergency funding into the online luxury retailer as part of a “pre-pack” administration process.
The business was in need of new funding before Christmas to prevent bankruptcy, The Sunday Times reported.
Investment group Greenoaks Capital Partners will also take part in the rescue deal that gives Farfetch a $500m bridge loan to continue offering its services, according to a statement.
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Farfetch CEO Jose Neves will remain at the company, although his exact role is still being negotiated with the new owners, according to a person with knowledge of the discussions.
This week Cartier-owner Richemont said it scrapped an agreement to sell part of its online fashion and accessories business Yoox Net-A-Porter to Farfetch.
The Swiss-based giant said it was pulling out of the deal after Coupang revealed it was planning to buy the fashion retailer.
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