Farfetch in rescue talks with Apollo Global

Farfetch is in talks with Apollo Global Management, "among a number of third parties", to secure emergency funding to stabilise its falling finances, according to Sky News.

The news comes after reports at the end of November said Farfetch Founder, José Neves, was understood to be in talks with bankers about a plan to take the global fashion platform back into private hands after a five-year spell of being listed on the New York Stock Exchange.

Neves is said to be keen to delist the business, which has lost 90% of its value since its IPO in 2018 - when it was valued at $6.3 billion - and was said to be plotting the move with bankers, as well as shareholders.

However, that is looking unlikely given the state of Farfetch’s finances following an unsuccessful run as a public company.

Backed by Richemont, the luxury goods group which owns Cartier, Farfetch was at one stage valued at $23b billion, but yesterday, 13 December, it had a market value of just $221 million.

The Sunday Times reported at the weekend that the company needed to raise as much as $500 million to shore up its finances.

It is unclear as to whether any new capital would be provided as debt or equity, or a combination of the two, and a deal is far from certain to be reached. It is also unclear as to the other parties talking to Farfetch about providing financing.