Farfetch is understood to be considering the sale of fashion retailer Browns it acquired in May 2015 as it looks to secure fresh funding.
Farfetch is reportedly contemplating the potential sale of its fashion retailer Browns as part of a rapid push to secure new funding. Reports from WWD suggest that the luxury group is exploring the sale of this fashion entity, acquired in 2015, in an effort to allay concerns about its precarious financial position.
Amidst discussions of a potential take-private deal to stabilize its finances, founder José Neves is reportedly engaging in talks with major shareholders and JP Morgan to potentially delist the business, just five years after its listing on the New York Stock Exchange.
While seeking investments from existing stakeholders, Farfetch has been in talks with top stakeholder Richemont. However, despite these discussions, Richemont has clarified that it has no intentions of further investing in Farfetch, emphasizing its lack of financial obligations or plans for lending to the business.
The company raised alarms regarding its financial health by announcing the decision not to release its quarterly financial results last week. It has, however, indicated that it intends to provide an update to the market in the near future.
