Global ecommerce retailer Coupang has acquired Farfetch, injecting $500m (£394.8m) in emergency funding into the embattled luxury fashion retailer.
Farfetch said in a statement that the acquisition allows it to access the funding it needs to continue providing “exclusive brands and boutiques with bespoke, cutting-edge technology and giving leading designers access to consumers around the globe”.
Coupang said it is “uniquely positioned” to unlock Farfetch’s “tremendous value” for the luxury goods market in South Korea, which has the world’s highest per capita spending on luxury goods.
Coupang added that its “operational excellence and innovative logistics” combined with Farfetch’s “leading role” in the luxury ecosystem will boost experiences for customers and brands globally.
Farfetch chief executive José Neves said: “Coupang’s proven track record and deep experience in revolutionising commerce will enable us to deliver exceptional service for our brand and boutique partners, as well as for our millions of customers around the world.
“We are thrilled to be partnering with such a respected Fortune 200 company that is committed to investing in innovations that transform all aspects of the customer experience with Farfetch.”
Coupang founder and chief executive Bom Kim added: “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.
“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.”
The deal comes after reports that the luxury fashion retailer needed to secure new funding before Christmas to avoid bankruptcy.