Online fashion specialist Farfetch has dismissed a report that it was considering acquiring bankrupt US department store business Barneys.
The New York Post reported yesterday that Farfetch had “kicked off negotiations with Barneys before its Chapter 11 bankruptcy filing — but the talks have been heating up”.
The newspaper claimed: “In one sign of how serious things are getting, the etailer has even convinced the landlord of Barneys’ crown jewel location on Madison Avenue to slash the rent and take back 40% of the 10-story store.”
However, in a statement today, Farfetch said: “The story is incorrect – Farfetch is not acquiring Barneys New York.”
An acquisition of Barneys would likely have raised eyebrows. Farfetch floated in New York last year valued at $6bn but its value has since plummeted to $2.8bn.
Farfetch recently bought luxury brands platform New Guards Group for $675m, a deal described by Farfetch founder and chief executive José Neves as one that “will transform the luxury industry”.
However, analysts were concerned that the acquisition and integration of New Guards could mean Farfetch would be loss-making for longer than had previously been expected.
Farfetch faces the prospect of a class action coordinated by f US law firms. One of those, Hagens Berman, said it is pursuing the legal action because of “possible disclosure violations” by Farfetch concerning “the veracity of [its] statements about the company’s business model, particularly related to [its] growth and profitability”.
No comments yet