Richemont and Farfetch part ways

The Korean company's announcement on 18 December that it was buying the online sales platform Farfetch came as a surprise to the luxury goods world, but it did save a very perilous situation. As a direct consequence of this acquisition, Richemont's agreement to buy a majority stake in the Ynap group has been cancelled. In a press release Richemont said: "Richemont, FARFETCH and Symphony Global, one of Mr. Mohamed Alabbar's investment vehicles, have terminated the agreements relating to the sale of a majority stake in YNAP to FARFETCH and Symphony Global, the adoption of FARFETCH Platform Solutions ("FPS") by most Richemont Houses and YNAP and the opening of e-concessions on the FARFETCH marketplace by several Richemont Houses. Following the transaction announced by FARFETCH, it is reasonable to expect that the $300 million senior convertible bonds issued by Farfetch Limited to Richemont in November 2020 will not be redeemed. The carrying value of these bonds in Richemont's accounts amounted to €218 million at 30 November 2023."

The digital commerce company Coupang is now perfectly positioned to develop Farfetch's potential in the vast luxury goods segment in South Korea, which has been a very buoyant market for many years. Founder and CEO Bom Kim said, "Farfetch will once again focus on delivering premium experiences for the world's most exclusive brands, while continuing to grow steadily and thoughtfully as a privately held company."

Following the termination of the agreements with FARFETCH and Symphony Global, Richemont said it was "reassessing options for YNAP to best leverage its strengths and potential under new leadership."