1️⃣ The Departure 🚪
"Neves exited the retailer with immediate effect," states a memo, signaling the end of an era for Farfetch, which went public in 2018 at a valuation of £4.92bn. Leadership exits include COO Luis Teixeira and CFO Tim Stone, setting the stage for a profound transformation under Coupang.
2️⃣ The Rescue 💼
Coupang's £397.2M investment saved Farfetch from potential administration after its rapid expansion led to financial distress. This deal, finalized in December, was a strategic move by Neves, who "landed Coupang as a potential buyer," demonstrating a pivot to ensure Farfetch's survival.
3️⃣ The Impact 💣
Farfetch faces a "streamline" process involving job cuts in the UK, Portugal, and other countries. A memo highlighted the necessity of this move: "This was a necessary decision to secure the future of our business," underscoring the gravity of Farfetch's predicament and the imperative for restructuring.
4️⃣ The Outlook 🔮
Coupang's acquisition has not been without controversy, with shareholders initially resisting the sale. Neves’ consultancy role and the anticipated divestiture of non-core assets like New Guards and Browns aim to refocus Farfetch on its marketplace roots, amid challenges including lost partnerships and a drastically reduced market value.
❓ Can Farfetch's streamlined strategy under Coupang revive its fortunes?
