Farfetch is in talks with Apollo Global Management about securing a last-minute cash injection as it teeters on the brink of collapse.
The luxury fashion site is understood to be in discussions with several parties about securing new financing, Sky News reported.
City sources said that Apollo was just one of the firms it was speaking with, but warned that it was still early days on whether a deal would be reached.
It is unclear whether the new capital would be provided as debt or equity – or a combination of the two.
It is also unclear how much Farfetch is looking to raise, but it is understood the company needs to secure as much as £396m ($500m).
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The race to secure emergency funding comes a fortnight after it was reported that Farfetch founder Jose Neves was looking to take the company private following a disastrous float on the New York Stock Exchange.
The business fueled speculation it was in trouble when it cancelled its quarterly financial results and said that it “expects to provide a market update in due course”.
The Apollo rescue deal is the latest in a string of strategic options the business is exploring in a bid to stay solvent.
Farfetch, which is also attempting to tap existing stakeholders for investment, is said to have been in discussions with top stakeholder Richemont.
However, the luxury conglomerate told Business of Fashion in a statement that it had no plans to further invest in the company.
It said: “Richemont would like to remind its shareholders that it has no financial obligations towards Farfetch and notes that it does not envisage lending or investing into Farfetch.”
The retailer was also reported to be considering the sale of its Browns Fashion business to raise additional capital.
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