Coupang has finalised its acquisition of Farfetch Holdings plc, a deal disclosed on December 18, confirming its commitment to provide Farfetch with 500 million in capital. In a statement Coupang said: “By providing access to 500 million dollars in capital, this acquisition allows Farfetch to continue delivering exceptional services for its brand and boutique partners, and to more than four million customers around the world. By leveraging Coupang’s operational excellence and innovative logistics, Farfetch is now well-positioned to pursue steady and thoughtful growth.”
The Fortune 200 company, listed on the NYSE, partnered with Greenoaks Capital for the acquisition, positioning itself alongside China’s Alibaba across various markets, reported WWD. The acquisition, part of a pre-pack administration for London-based Farfetch, faced multiple challenges and a cash crunch.
A filing published on Farfetch’s investor page confirmed on January 30th Surpique LP, an entity owned by Coupang, completed the acquisition of Farfetch Holdings plc’s business and assets through a pre-pack administration process. Following a marketing process that did not yield competing proposals, Surpique LP purchased Farfetch’s business, replacing Farfetch Limited with Surpique Acquisition Limited as a guarantor.
With Coupang in full control post-sale, efforts are made to retain existing management, yet uncertainties surround potential job losses, WWD said. Despite negotiations for non-core asset sales and bondholders disputing the deal, Coupang aims to optimise Farfetch’s operations, redirecting marketing towards transactions.
