Richemont Ends YNAP Agreement with Farfetch
December 18 2023 - 11:26AM
Dow Jones News
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)
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