Luxury ecommerce platform Farfetch is desperately seeking a fresh cash injection as it strives to avert a collapse into insolvency.
The luxury etailer is facing mounting debt and other financial obligations and is exploring a number of options to stay afloat beyond the year, including the potential sale of its brand incubator New Guards Group, according to Business of Fashion.
Farfetch has around $2.8bn in financial obligations. It has $1bn in loans, including a $200m credit facility it took out in September.
On November 29, Farfetch cancelled its quarterly earnings report, following a report in The Telegraph which said that founder José Neves was considering delisting the company from the New York Stock Exchange.
In its fight to survive, the retailer has been showcasing business units like New Guards Group and luxury brand Violet Gray to potential buyers.
Farfetch has also attempted to tap existing partners for investment to stay afloat, although it has yet to secure a bailout.
The retailer had looked to secure a deal with Richemont in which Farfetch would buy a stake in rival Yoox-Net-a-Porter, but this appears to have stalled and the Swiss giant said it now had no plans to invest further in the struggling etailer.
Farfetch has declined to comment.
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