Coupang Acquires Farfetch, Injecting $500 Million to Sustain Operations

Deal Provides Coupang Access to Luxury Goods Market in South Korea, Farfetch to be Taken Private

South Korean e-commerce giant Coupang has acquired struggling luxury retailer Farfetch, providing the company with $500 million to sustain its operations.
Farfetch had been facing bankruptcy, with its share price reflecting growing concerns over its viability. The company's value had fallen 86% over the current year.
The deal gives Coupang expanded entry into the personal luxury goods sector in South Korea, a market recognized for having the world’s highest per-capita spending on such items.
Farfetch will be taken private and its shares will be delisted as part of the deal, while shareholders, including Farfetch founder José Neves, will see their investments wiped out.
Coupang plans to use its logistics expertise to expand Farfetch’s luxury ecosystem, providing a superior customer experience and giving leading designers access to consumers around the globe.