Reported Earlier, "Struggling Luxury Fashion Site Farfetch In Talks About Apollo Rescue Deal; Apollo Global Management Is One Of A Number Of Third Parties In Talks About Providing Hundreds Of Millions Of Dollars In Emergency Funding To The British Luxury Fashion Site" -Sky
Portfolio Pulse from Benzinga Newsdesk
Farfetch, a British luxury fashion site listed on the NYSE, is in discussions with Apollo Global Management and other parties to secure emergency funding. The company is struggling financially and may need up to $500m. Farfetch's market value has plummeted from $23bn to $221m since its 2018 IPO. Richemont, a backer, has refused to invest more, and Farfetch has delayed its quarterly results announcement. The company is also considering selling subsidiaries and is unlikely to complete its planned acquisition of a stake in Yoox Net-a-Porter.
December 13, 2023 | 5:44 pm
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NEUTRAL IMPACT
Apollo Global Management is in talks to provide emergency funding to Farfetch, which could lead to a potential investment or partnership.
While Apollo's involvement as a financier could be seen as a positive development, the uncertainty of the deal and the lack of details on the terms make the short-term impact on Apollo's stock price neutral.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Farfetch is in critical need of funding, with talks of securing up to $500m. The company's market value has significantly decreased, and it has delayed its financial results, indicating potential liquidity issues.
The news of Farfetch seeking emergency funding and the delay in financial reporting are strong indicators of financial distress, which typically leads to negative investor sentiment and a potential decrease in stock price in the short term.
CONFIDENCE 80
IMPORTANCE 100
RELEVANCE 100