Farfetch denies reports of Barneys acquisition

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Farfetch denies reports of Barneys acquisition from New York Post
A potential Barneys acquisition would not have been Farfetch’s first foray into physical retail,.
// Farfetch release a statement confirming there will be no acquisition of Barneys New York
// Despite revenue growth losses have risen due to investments and expansion

Farfetch has denied reports they are in talks to buy Barneys amidst reports they are facing challenges of their own.

The news follows a New York Post article that said the luxury online marketplace was in advanced talks with the department store to save its flagship Manhattan branch.

In response, Farfetch released a statement this morning that said the story was “incorrect”.

“Farfetch is not acquiring Barneys New York,” the online retailer said.

Sources speaking to the New York Post said Farfetch convinced the Barneys’ Madison Avenue landlord to reduce the rent and take back 40 per cent of the 10-story store.

Farfetch continues to report revenue growth on the back of widening losses due investment in business expansion.

It reported losses before tax of $88.8 million (£73.26 million) in the second quarter, compared to $17.5 million a year earlier.

A potential Barneys acquisition would not have been Farfetch’s first foray into physical retail, since it is already the owner of iconic London retailer Browns and has partnerships with various other retailers, such as Harrods and Chanel.

More recently, the UK-headquartered retailer bought New Guards Group, which operates luxury streetwear retailer Off White, for $675 million (£556 million).

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