By Dean Seal
Shares of Farfetch sank to an all-time low after the luxury group Richemont said it has no plans to invest further in the e-commerce company following speculation that Farfetch may be taken private.
The stock fell more than 50% to a record low of $1.03 in recent trading. Shares have now fallen by three quarters since the start of the year.
The owner of Cartier said Wednesday morning that it has no financial obligations toward Farfetch. Richemont also said it would review its agreement, reached last year, to divest nearly half of its e-commerce business Yoox Net-A-Porter in return for a minority stake in Farfetch and access to its platforms. That deal hasn't yet closed, according to a Richemont spokesperson.
The Swiss luxury group's comments come after Farfetch said late Tuesday that it won't stand by its previous guidance, issue new guidance or publish third-quarter results that were due Wednesday.
Also Tuesday, the British daily The Telegraph reported that Farfetch founder Jose Neves was in talks with top shareholders to take the company private. According to the newspaper, taking the company private would have support from major backers, including Richemont and e-commerce giant Alibaba. Farfetch shares jumped more than 20% Tuesday to close at $2.10.
Write to Dean Seal at firstname.lastname@example.org
(END) Dow Jones Newswires