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

Richemont and Farfetch reached an agreement 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 EUR218 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.

 

Write to Andrea Figueras at andrea.figueras@wsj.com

 

(END) Dow Jones Newswires

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

Copyright (c) 2023 Dow Jones & Company, Inc.
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