What: Coupang has finalised its acquisition of the struggling luxury fashion platform Farfetch, injecting USD 500 million to ensure smooth operations, without detailing the impact on jobs or the fate of non-core assets like Browns and New Guards Group.

Why it is important: This acquisition marks a significant shift in the luxury e-commerce landscape, with Coupang's entry signifying the growing importance of strategic investments and operational efficiency in sustaining and expanding high-end retail online. It highlights the evolving dynamics of the fashion e-commerce sector, where traditional and emerging players must adapt to survive and thrive amidst financial challenges and competitive pressures.

South Korean e-commerce giant Coupang has completed its acquisition of Farfetch, promising a USD 500 million capital infusion but leaving questions about job security and the sale of noncore assets unanswered. The deal, which has sparked potential litigation from Farfetch bondholders alleging undervaluation and lack of transparency, signifies a major shift in the luxury e-commerce market. Coupang aims to leverage its operational expertise to foster growth at Farfetch, which has faced profitability challenges. The acquisition also includes plans to streamline Farfetch's operations and possibly divest nonessential business units like Browns and New Guards Group. As Coupang ventures into the luxury and fashion sectors, the industry watches closely to see how this partnership will influence the broader e-commerce landscape and Farfetch's long-term strategy.

Coupang finalizes purchase of troubled Farfetch