Luxury fashion platform Farfetch has been acquired by South Korean e-commerce giant Coupang in a takeover deal that will see Farfetch pulled off the New York Stock Exchange and taken private. The statement released by Farfetch highlighted Coupang's "operational excellence and innovative logistics" combined with Farfetch's leading role in the luxury ecosystem, promising exceptional experiences for customers, boutiques, and brands worldwide.

Bom Kim, the founder and CEO of Coupang, expressed his admiration for Farfetch as a transformative force in demonstrating the future of luxury retail. He emphasized that Farfetch will continue to prioritize providing an elevated experience for exclusive brands and redefine the customer experience for luxury clients globally.

José Neves, the founder, CEO, and chairman of Farfetch, praised Coupang's track record in revolutionizing commerce. He believes that Coupang's expertise will enable Farfetch to deliver exceptional service to brand and boutique partners, as well as millions of customers around the world. As part of the acquisition, Farfetch will be fully controlled by Coupang, with shareholders' investments, including Neves', being wiped out.

The fate of Farfetch's assets, such as Browns, New Guards Group, Stadium Goods, and its $200 million stake in Neiman Marcus, remains unclear. Ongoing discussions with potential buyers are being held regarding Browns and New Guards Group. This acquisition has also resulted in the termination of Richemont's deal to sell a majority stake in Yoox Net-a-porter to Farfetch and Alabbar.

In recent weeks, Farfetch faced difficulties in securing support from its commercial partners, with Richemont and Alibaba both distancing themselves from rescuing the company. Richemont stated that it would not invest in Farfetch, while Alibaba was willing to provide funding but not acquire the company outright. The termination of the pending deal with Richemont has led to uncertainties regarding the future partnerships and distribution in China.

Despite these challenges, Farfetch's tech expertise remains a core strength of the business. Neves has always been proud of the platform's ability to connect large and small specialty stores, as well as assisting brands and retailers in understanding consumer demand and combining physical and digital retail. Farfetch's original model of marketing fashion and processing orders without holding stock was initially considered clever and cutting-edge.

However, Farfetch's stock fell by more than 35 percent during its capital markets day in December last year, signaling concerns about the company's acquisitions and business complications. The company's market capitalization dipped below $250 million recently, a significant drop from the $25 billion it reached in 2021.

Moody's Investors Service also recently downgraded Farfetch's credit rating to "Caa2," placing it deep into junk territory, with the possibility of further downgrades. Standard & Poor's had already lowered its rating on the luxury platform earlier this month.

Despite the challenges and uncertainties, Farfetch's acquisition by Coupang presents an opportunity for the luxury fashion platform to redefine its strategy, focus on providing exceptional service, and leverage Coupang's operational excellence and logistics expertise in the global luxury retail landscape.