Farfetch in talks with Apollo over rescue deal

Farfetch has reportedly entered talks with Apollo Global Management to secure emergency funding in a bid to rescue the group.

According to Sky News, Apollo is one of a “number of firms” in talks with the group, with sources adding a deal was far from being reached, and that it was not yet clear how much funding is needed.

According to sources, it was also unclear whether the new capital would be provided as debt or equity, or both.

The news comes shortly after reports emerged that Farfetch founder Jose Neves was in talks to take the public company private.

The luxury retailer first floated in 2018 and was at one stage valued at $23bn (£18bn), yet this week it had a market value of only $221m (£175m).

Last week, it was reported that Farfetch was considering selling fashion retailer Browns as it faces a race against time to secure the future of the company.

Farfetch was also said to be in talks with existing stakeholder Richemont to secure extra funding.

However, Richemont reportedly expressed no interest in further investment in the company.

It told investors that “it has no financial obligations towards Farfetch and notes that it does not envisage lending or investing” into the business.

Farfetch currently has £2.2bn in financial obligations, which include £792m in loans and a £158m credit facility it took out in September.

The company fueled speculation around its struggles when it announced it would not be publishing its third quarter results on 28 November.

Farfetch has been approached for comment.