Farfetch is attempting to finalise a rescue deal with a private equity-backed buyer that would see its shareholders get wiped out.

The online luxury retailer is in advanced negotiations to go private in a deal with its senior debt holders, a group led by investment firms Tencent and Dragoneer, according to The Sunday Times

A last-minute bailout would reportedly result in Farfetch receiving $500m (£394m) of emergency funding and could be announced as soon as today. However, any deal could still crumble. 

To avoid bankruptcy, Farfetch needs new funding before Christmas. AlixPartners has been lined up as the potential administrator.

Chief executive and co-founder José Neves instituted a dual-class shareholder structure, which saw him take 77% of Farfetch’s voting rights despite only owning a 15% stake.

Neves, who is said to have sourced the buyer himself, is expected to remain with the company should the rescue deal complete, while Apollo Asset Management has reportedly exited the process. 

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