Farfetch has delayed publication of its Q3 results, which were due today, and said it will not provide forecasts or guidance.
British broadsheet The Daily Telegraph reported this week that Farfetch founder Jose Neves is in talks with bankers and shareholders about a potential deal to take the company private.
A deal and “plans could be announced imminently,” he added.
Shares in Farfetch, a secondary market site for high fashion and luxury hard goods like watches, rose by 23% yesterday, when the news was reported.
Richemont issued a press release this morning stating that it has no financial obligations towards Farfetch, does not envisage lending or investing into the company and is reviewing its options with respect of its deal terms with announced last summer.
A management buyout is seen by analysts as a complication for Richemont, which is selling a majority stake in its online business Yoox Net-a-Porter.
Under the terms of the agreement struck in August 2022, Farfetch is the lead buyer for 47.5% of YNAP.
Mr Neves has said he is committed to the YNAP deal, but if it becomes a casualty of Farfetch going private, Richemont would be left holding a majority stake in YNAP, which analysts at Oddo calculate is losing around €200 million a year.
Farfetch’s market value has cratered from $26 billion in 2021 to $600 million in recent trading.
