Farfetch is racing to secure fresh funding as it teeters on the brink of collapse.
The luxury ecommerce platform is exploring several strategic options, including a possible take-private sale, to stay solvent, The Business of Fashion reported.
Farfetch has £2.2m ($2.8bn) in financial obligations, which include £792m ($1bn) in loans and a £158m ($200m) credit facility it took out in September.
The New York-listed business cancelled its quarterly earnings report last week and said it “expects to provide a market update in due course”.
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The move followed reports from The Telegraph that founder José Neves was in discussion with top shareholders and JP Morgan to delist the business.
Farfetch, which is also attempting to tap existing stakeholders for investment, is said to have been in discussions with top stakeholder Richemont.
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 shareholder currently has a deal in place to sell its Yoox Net-A-Porter business to Farfetch after receiving clearance from the regulator. Richemont said it was “carefully monitoring the situation”.
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