Farfetch CEO to step down following Coupang rescue deal

Farfetch founder and CEO Jose Neves is reportedly stepping down from the company following the sale of the business to South-Korean e-commerce company Coupang, according to The Telegraph. 

According to an internal memo sent to the staff on Thursday, Neves will remain at the company in a consultancy role and will not be replaced as CEO. Coupang existing management will instead oversee the newly-rescued retailer and its executive team. 

His departure comes as part of a series of layoffs at the company, including chief fashion and merchandising officer Elizabeth Von Der Goltz and head of Farfetch platform solutions Kelly Kowal. 

According to the outlet the memo said: “After careful consideration we have decided to streamline the business to allow us to operate from a position of financial strength.

“While it’s never easy to go through this process, this was a necessary decision to secure the future of our business.”

Farfetch was on track to buy a stake in luxury retailer Yoox Net-a-Porter before falling into financial troubles and being rescued by Coupang in a $500m (£397m) deal. 

The announcement of Coupang’s acquisition was not welcomed by a majority of Farfetch shareholders who are now taking the retailer to court to challenge the sale, claiming it has undervalued the company. 

The shareholders group had previously said to be concerned about the reasons “why the sale has come about, whether the business was even marketed to others and why the terms of the proposed sale to Coupang are so value-destructive”.

Farfetch has been contacted to comment.