South Korean retailer Coupang takes control of Farfetch

(Sharecast News) - South Korean ecommerce group Coupang is to take over struggling online luxury retailer Farfetch for an undisclosed sum. The deal brings an end to a months-long saga that pushed Farfetch to the brink of collapse amid mounting debt and a luxury slowdown.

It also means that a deal to buy a 47.5% stake in Yoox-Net-a-Porter from Richemont has been cancelled.

Coupang, which is listed in New York and has headquarters in Seattle, is the largest online marketplace in South Korea, home to the world's highest per-capita spending on personal luxury goods.

The group said in a statement it is injecting $500m of capital into Farfetch so that the latter can "continue providing exclusive brands and boutiques with bespoke, cutting-edge technology".

"Farfetch is a landmark of the luxury landscape and has been a transformative force in demonstrating that online luxury is the future of luxury retail," said Bom Kim, founder and chief executive of Coupang.

"Farfetch will rededicate itself to providing the most elevated experience for the world's most exclusive brands, while pursuing steady and thoughtful growth as a private company. We also see tremendous opportunities to redefine the customer experience for luxury clients everywhere."