SPOTLIGHT| South Korean E-commerce Giant Coupang Acquires Farfetch

On December 18, Coupang, a leading name in South Korea's cross-border e-commerce sector, announced the acquisition of luxury fashion platform Farfetch. As part of the deal, Coupang will inject $500 million as emergency funds to save Farfetch from potential bankruptcy.

Farfetch had been grappling with several challenges, including considerations for privatization and delisting, halting its financial reports, and facing abandonment by former partners. Despite these hurdles, the company managed to avoid bankruptcy through determined self-rescue efforts and strategic capital management.

The company's performance took a steep dive, with its share price crashing 97% from its peak. This downturn led to credit downgrades to the ‘CCC-plus’ by agencies like Moody's and Standard & Poor's.

Additionally, Farfetch's previously planned acquisition of a 47.5% stake in YNAP from Richemont Group was formally terminated. This followed the sale of Farfetch and Richemont Group's assertion of having no financial commitments to Farfetch.