The company is still well positioned to be the market leader in global luxury e-commerce, but new owner Coupang has its work cut out for it, writes Imran Amed.
Founder José Neves and eight other c-suite executives are departing the luxury marketplace, which faces an uncertain future under its new owner.
A newly formed group of institutional investors with a massive stake in Farfetch is requesting immediate pay back on the company’s debts amid fear that a deal with Coupang will further erode the e-tailer’s value.
While cash-strapped e-tailers Farfetch and Matches narrowly avoided collapse this week, both inking sales to new owners, online luxury’s way forward remains unclear.
The South Korean e-commerce firm Coupang has saved Farfetch from potential bankruptcy, and could use its logistical and marketing might to solve some of the luxury e-tailer’s seemingly intractable problems. But “everything stores” have a spotty track record when it comes to high-end retail.