Farfetch, the prominent online luxury retailer, is actively pursuing emergency funding talks with Apollo Global Management to fortify its financial standing, according to reports from Sky News. The news resulted in a nearly 12% surge in the company’s shares.
Farfetch is currently engaged in discussions with various parties for new financing, and Apollo Global is one of the firms involved in these talks. However, both Farfetch and Apollo Global have yet to provide immediate comments on these reports.
The specifics of the funding, whether in the form of debt, equity, or a combination, remain uncertain, and the likelihood of a definitive deal is still undetermined. In November, there were indications that Farfetch’s founder and CEO, José Neves, was in discussions with major shareholders, including Richemont (owner of Cartier), regarding a potential privatization of the company. Notably, Richemont stated that it would not be injecting cash into the online luxury retailer.
Established in 2007 and headquartered in London, Farfetch went public on the New York Stock Exchange in September 2018. Since its listing, the company has faced challenges, including weakening demand in the U.S. and China.
