Farfetch Stock Hits All-Time Low Amid Richemont Episode, Delisting Reports
November 29 2023 - 11:35AM
Dow Jones News
By Dean Seal
Shares of Farfetch sank to an all-time low after the luxury
group Richemont said it has no plans to invest further in the
e-commerce company following speculation that Farfetch may be taken
private.
The stock fell more than 50% to a record low of $1.03 in recent
trading. Shares have now fallen by three quarters since the start
of the year.
The owner of Cartier said Wednesday morning that it has no
financial obligations toward Farfetch. Richemont also said it would
review its agreement, reached last year, to divest nearly half of
its e-commerce business Yoox Net-A-Porter in return for a minority
stake in Farfetch and access to its platforms. That deal hasn't yet
closed, according to a Richemont spokesperson.
The Swiss luxury group's comments come after Farfetch said late
Tuesday that it won't stand by its previous guidance, issue new
guidance or publish third-quarter results that were due
Wednesday.
Also Tuesday, the British daily The Telegraph reported that
Farfetch founder Jose Neves was in talks with top shareholders to
take the company private. According to the newspaper, taking the
company private would have support from major backers, including
Richemont and e-commerce giant Alibaba. Farfetch shares jumped more
than 20% Tuesday to close at $2.10.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
November 29, 2023 11:20 ET (16:20 GMT)
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