Breaking news: Farfetch CEO steps down amid Coupang acquisition fallout
In a significant shakeup following the acquisition of luxury marketplace Farfetch by South Korea’s Coupang for $500 million, CEO José Neves has announced his departure from the company.
Neves, along with other high-ranking executives including chief fashion and merchandising officer Elizabeth Von Der Goltz and head of Farfetch Platform Solutions (FPS), are preparing to exit, marking a pivotal moment in Farfetch’s trajectory.
The news of Neves’ departure was revealed through an internal memo obtained by WWD, indicating that Neves would transition into a consultancy role rather than being directly replaced. Instead, the reins of the business will be taken over by Coupang founder Bom Kim alongside Farfetch’s existing executive team.
A spokesperson for Farfetch confirmed the departure, attributing it to the company’s strategic reassessment of priorities and resources. The decision aims to position Farfetch for future success by streamlining operations and refocusing on delivering exceptional experiences for brands, boutiques, and customers.
The fallout from the acquisition doesn’t stop there. More layoffs are expected in the coming days as Coupang seeks to optimise the organisation for improved financial strength. The exact number of job cuts remains undisclosed, but affected employees will be notified in stages, starting with Portugal on Friday and extending to the UK and other regions on Monday.
The acquisition by Coupang has sparked backlash from both partners and shareholders. Previously, Farfetch boasted strong liquidity and enterprise value, but the acquisition has been labeled by some shareholders as a “distressed sale.” Disgruntled investors holding over 50% of Farfetch’s convertible senior notes have contested the takeover, issuing a winding-up petition in the Cayman Islands and calling for an investigation into Neves’ role in the sale.
Additionally, loyal partners such as Kering, Richemont, and Neiman Marcus have either terminated or suspended their contracts with Farfetch and its tech offerings, signaling further turbulence for the luxury marketplace in the wake of the acquisition.
As Farfetch navigates these challenges, the departure of its CEO marks a turning point for the company, signaling a new chapter under the ownership of Coupang and prompting questions about its future direction in the luxury retail landscape.
