Up-to-date coverage of the latest events in UK retail.

Farfetch facing legal battles after second quarter losses

Farfetch could face legal battles from five US law firms after $2bn (£1.6bn) was wiped off it market value last week.

The online retailer recently posted losses of $89.6m (£73.9m) during its second quarter which founder Jose Neves blamed on an intensely promotional market.

Law firms are in talks with clients about taking legal action against the luxury brand retailer and to determine if Farfetch misled investors about its growth and profitability projection, according to The Times.

Analysts at American bank Wells Fargo said: “It’s clear that [Farfetch’s] story has changed meaningfully since the IPO and Farfetch shares are headed to the penalty box.”

Poundland owner prepares for sale or float

Poundland owner Pepkor Europe is understood to be mulling a €4bn sale or flotation next month.

Pepkor Europe has separated itself from its struggling parent company Steinhoff and refinanced its high-interest debts, according to The Times.

Ted Baker partners with Next to expand its childrenswear product

Ted Baker has announced it has joined forces with Next to help create and sell Ted Baker childrenswear products.

The product licence agreement will run for an initial five-year period and will see the creative teams at both retailers collaborate on baby, boys’ and girls’ clothing, shoes and accessories.

The new collections will launch in spring next year and will be sold online and in-store at Next and online at Ted Baker.

Sports Direct closes eight Jack Wills stores with more at risk

Sports Direct has shuttered eight Jack Wills stores after acquiring the preppy clothing brand earlier this month.

Sports Direct said on Thursday that it would aim for staff from the stores affected – Derby, Reigate, Malborough, Rock, Durham, Kingston, Tunbridge Wells and St Albans – to be redeployed elsewhere in the group.

If agreements cannot be reached with landlords to lower rents on other stores they may also close, according to The Financial Times.