José Neves steps down following Coupang's acquisition, marking a seismic shift for Farfetch. Amidst a £400M rescue deal, leadership exits and job cuts loom, signaling a new era under Coupang's stewardship.
"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.
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.
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.
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?
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