Last-ditch talks to save Farfetch from collapse continue this weekend as administrators wait in the wings.
The British online luxury retailer’s founder Jose Neves is trying to take the US-listed company private after its shares lost nearly all their value since floating in New York five years ago.
But only one bidder remains. Private equity group Apollo, which was reportedly interested, is not involved.
The London shopping website helps wealthy shoppers buy designer labels online.
It sells Burberry’s clothing around the world and has also teamed up with Gucci to offer a 90-minute delivery service for the Italian fashion house’s clothes and accessories.
Bad sign: The online luxury retailer’s founder Jose Neves is trying to take the US-listed company private
It also acts as a portal to thousands of independent boutiques. Once valued at £19billion, it was launched amid much fanfare as the well-connected Neves sought to capitalise on the luxury goods industry’s reluctance to embrace digital technology.
But despite a pandemic boom in online shopping and luxury spending, Farfetch has struggled to make money.
Keen to avoid paying discounts to online retailers, top brands have baulked at selling via third-party platforms like Farfetch. The shares have slumped to just 77 cents, valuing Farfetch at less than £200m.
Its debts of £1.3billion are not due to be repaid before 2027 but investors are worried it doesn’t have the cash to cover its costs in the meantime.
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