E-Commerce

As a workaround, the embattled marketplace is considering providing “complete anonymity” to third-party retailers in exchange for sourcing certain luxury brands, according to internal documents reviewed by BoF.

The Swiss luxury conglomerate reports quarterly results this week, as the failed deal to offload its struggling e-commerce unit to Farfetch looms large. That, plus what else to watch for in the coming days.

With global demand in flux, brands ramped up their presence at concert tours, Formula One races, tennis championships and more. New creative directors debuted at Louis Vuitton, Gucci, Burberry and Tom Ford.

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.

Farfetch is in discussions with a liquidity provider to secure $500 million in emergency funding, in a deal that would also take the company private and wipe out shareholders, according to a report from The Sunday Times.

Sebastien Fabre will lead the Paris-based vintage start-up as it seeks to scale its platform and extend sourcing operations to the US.

The e-commerce giant is seeking a cash injection to avert a collapse that could send shockwaves across the fashion industry. So far nobody has come to the table and time is running out, but founder Jose Neves may yet have a move up his sleeve.

Farfetch’s chief executive José Neves is reportedly conferring with top shareholders, including Richemont and Alibaba, and JP Morgan about delisting the company, The Telegraph reported on Tuesday. A take-private deal could happen imminently as Farfetch’s stock remains under pressure, according to the report. The e-tailer’s share price has plummeted more than 80 percent since its 2018 IPO.

The complex agreement would see the luxury marketplace eventually take control of its top competitor from current owner Richemont.

Financial results from Kering and Hermès will confirm or counter warning signs about the spending of wealthy consumers. That, plus what else to watch for in the coming week.

The London-based luxury e-commerce giant, which has lost 97 percent of its market value in the last two years, has suffered from lack of focus, writes Imran Amed.

EU regulators are expected to give the go-ahead for Richemont to spin-off Yoox Net-a-Porter in a joint venture with rival Farfetch. But in the 14 months since the deal was announced, Farfetch has lost 90 percent of its market value with significant implications for the transaction and the wider fashion ecosystem.