FARFETCH was snapped up by South Korean e-commerce group Coupang yesterday as part of a last-minute rescue deal for the struggling online luxury retailer.

The UK-based but US-listed firm will receive $500m (£395.6m) in capital funding to continue its operations and its shares will be delisted.

The deal will wipe out Farfetch's shareholders, which include founder and chief executive Jose Neves, who holds a 15 per cent stake.

Farfetch has had a torrid time since it floated in 2018, with its value plummeting from around $23bn to $250m.

"Farfetch is a landmark of the luxury landscape and has been a transformative force in demonstrating that online luxury is the future of luxury retail," Bom Kim, founder and chief executive of Coupang, said yesterday.

Neves said: "Coupang's proven track record and deep experience in revolutionizing commerce will enable us to deliver exceptional service for our brand and boutique partners, as well as for our millions of customers around the world."

Cartier-owner Richemont said in a separate statement it would pull out of a deal to sell off its online fashion and accessories business to Farfetch following news of the rescue deal.

(c) 2023 City A.M., source Newspaper