Luxury online retailer Farfetch is reportedly in discussions with Apollo Global Management to secure emergency funding and stabilize its financial situation. The talks come as Farfetch seeks new financing from various parties, with Apollo being one of several firms involved in the discussions. The exact nature of the capital infusion, whether it will be in the form of debt, equity, or a combination, remains unclear. There is no guarantee that a deal will be reached, highlighting the uncertainty surrounding Farfetch’s financial stability.

Upon news of the discussions, Farfetch’s shares rose nearly 12%, indicating positive investor sentiment. However, both Farfetch and Apollo Global have declined to comment on the matter, leaving the situation in limbo.

This development follows a previous report in November where it was revealed that Farfetch founder and CEO José Neves was engaging in discussions with major shareholders, including Richemont, the owner of Cartier. Speculation arose about a potential privatization of Farfetch, but Richemont clarified that it would not provide any financial contribution to the online luxury retailer.

Established in 2007 and headquartered in London, Farfetch faced challenges since its debut on the New York Stock Exchange in September 2018. Weakening demand in the United States and China has significantly impacted the company’s performance, necessitating the need for emergency funding to stabilize its financial situation.

As the talks with Apollo Global Management continue, it remains uncertain how this potential rescue deal will unfold and how it will impact Farfetch’s future prospects. The online luxury retailer will undoubtedly be hoping for a positive outcome as it navigates the complexities of the current market.

Links:
1. Reuters: Farfetch in talks with Apollo Global Management for emergency funding
2. Bloomberg: Farfetch in discussions with Apollo Global Management for rescue funding