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Richemont Ends YNAP Agreement With Farfetch — Update

By Andrea Figueras


Luxury group Richemont said it won't complete a planned transaction with Farfetch involving its Yoox Net-A-Porter platform, and expects to lose out on convertible senior notes previously issued by Farfetch.

The move follows news that Coupang is buying British-Portuguese luxury e-commerce company Farfetch's business and assets.

Richemont and Farfetch reached a deal last year under which Richemont agreed to divest nearly half of its e-commerce business YNAP in return for a minority stake in Farfetch, and access to the latter's platforms.

The Swiss luxury company said Monday that it doesn't expect that the $300 million convertible senior notes issued by Farfetch to Richemont in November 2020 will be repaid. The carrying value of these notes in Richemont's accounts amounted to 218 million euros ($237.5 million) as at Nov. 30, 2023 the company said.

Both Richemont and YNAP continue to operate on their own platforms, and the company will re-evaluate options for the sale of its e-commerce business, it said.

In November, Richemont--which owns Cartier and Van Cleef & Arpels--said it could review its deal with Farfetch following speculation the e-commerce company might be taken private.

On Monday, e-commerce company Coupang said it plans to acquire the business and assets of Farfetch.

Farfetch has had financial trouble since its stock market debut in 2018, and its shares have lost value. Five years ago, the stock started trading at $27 a share. On Friday it closed at $0.64 a share.

As for Richemont, it has struggled to make YNAP profitable, and the business had weighed on the wider group before last August's deal was reached, a development widely welcomed by sector analysts and by investors at the time.


Write to Andrea Figueras at


(END) Dow Jones Newswires

December 18, 2023 11:56 ET (16:56 GMT)

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