Farfetch has announced the closure of its white-label business unit, Farfetch Platform Solutions, as it focuses on its core luxury marketplace. The decision, driven by financial difficulties, is part of a broader strategy to streamline operations under new ownership.
- Farfetch Platform Solutions, which will be closing, previously offered technology and commerce solutions for notable clients like Reebok and Harrods.
- Earlier this year, significant redundancies affected the unit, impacting between 25% and 30% of Farfetch’s workforce due to cost-saving measures.
- The luxury fashion e-commerce platform was acquired by Korean conglomerate Coupang for $100m following financial struggles revealed in late 2023.
- The shift in leadership saw Coupang’s Bom Kim replacing Farfetch founder José Neves in February.
Farfetch has made the strategic decision to close its Farfetch Platform Solutions unit. This segment of the business specialised in providing commerce solutions and retail technology, offering services to high-profile clients such as Reebok and Harrods. This move forms part of Farfetch’s focus on its core luxury fashion marketplace, a shift that comes under Coupang’s ownership.
Significant redundancies earlier in the year saw Farfetch reduce its workforce by 25% to 30%. These cutbacks were part of a cost-saving initiative reflecting the company’s financial difficulties at the time.
The acquisition of Farfetch by Korean giant Coupang, valued at $100 million, marked a new chapter for the company. This deal followed the revelation of Farfetch’s financial struggles in December 2023.
In February, leadership changes were implemented, with Coupang founder and CEO Bom Kim taking over from Farfetch’s original founder, José Neves. This leadership transition is emblematic of the strategic realignment underpinned by Coupang’s vision for Farfetch.
A spokesperson for Farfetch highlighted a commitment to providing exceptional shopping experiences and aiming to enhance luxury offerings for customers and partners. The company collaborates with over 500 fashion boutiques across various regions, including Europe, the Americas, and Asia-Pacific.
Farfetch’s restructuring underlines a significant shift in focus towards enhancing its core luxury marketplace while navigating new ownership challenges.
