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The Founder of Farfetch Steps Down After a £400M Coupang Acquisition

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The Founder of Farfetch Steps Down After a £400M Coupang Acquisition

Upon receiving a £400m lifeline from Korean ecommerce firm Coupang, Farfetch’s founder José Neves has stepped down from the company.

According to a memo to employees cited by the Telegraph, Neves made an immediate departure from the retail enterprise.

Back in 2018, the entrepreneur took Farfetch public in the US, securing a valuation of £4.92bn. However, the company’s stock tumbled post-IPO, causing investors to suffer losses under the acquisition agreement.

Although Neves will continue to serve as an advisor at the retailer, Coupang’s existing leadership will oversee Farfetch without directly replacing the founder.

Employees were notified that workforce reductions would commence in the UK and other nations on Monday, and in Portugal on Friday.

Per the memo: “After careful consideration, we have opted to streamline the business to strengthen our financial position.”

“While this process is never easy, it was a necessary choice to safeguard the future of our business,” the statement continued.

In a central announcement, a company spokesperson remarked: “As we evaluated primary priorities and resources throughout the business, we made the tough yet vital call to downsize the global workforce and eliminate redundant positions.”

This measure aims to secure the company’s future, allowing Farfetch to operate from a robust position and concentrate on its fundamental mission of delivering outstanding experiences for brands, boutiques, and customers.

In December, Coupang acquired Farfetch, agreeing to inject £397.2m in emergency funding into the online luxury retailer via a pre-pack administration process.

This step followed a phase of swift expansion that left the company unable to meet its obligations, potentially leading to administration.

Image Source: Sharaf Maksumov / Shutterstock

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