Breaking: ‘Fatfetch Farfetch’ is going bankrupt…

From a market capitalization of $20 billion, down to a market capitalization of $200 million, ‘Farfetch’ took just under 2 years. (2021 –> 2023)

Let Ali, Temasek, IDG, Jingdong became the receiver, Richemont lost its own mother did not recognize, can only be in the corner of the silent tears.

As you may have heard, Farfetch (*Chinese translation: Fafaqi), which has been in the fashion buyer’s circle for 15 years, has recently been revealed to be on the verge of bankruptcy.

The stock price has been setting new record lows almost every day ….

Some people even exaggerate that if Farfetch goes bankrupt, it will be the “Lehman moment” of the fashion industry (Lehman Brothers collapsed and became the trigger for the global financial crisis).

What do you think?

For those of you who play with trends, the most recent time you’ve played with the development of hair curiosity may have been last year when the “YEEZY x GAP x Parisian House” co-branding was put on sale online.

The ordering experience and the slow shipping speed make a deep impression on people.

A few years ago, sea Amoy almost you can never avoid Canada’s SSENSE and London’s Farfetch. these two are asset-light mode, most of the goods are not their own, docking global buyers, brand warehouses, their own no matter what, buyers are not lucky, very easy to be on the platform of buyers from all over the world to teach to do people. The shopping experience is extremely poor.

And the way of global direct mail leads to the price may even be higher than the counter a cut. But you all, if you bypass Fa Faqi own sea Amoy, and can easily save 1k + ……

Reference to the domestic IT group’s online business, the same convergence of sources, but are IT’s own stalls. Timeliness, price, discount strength, after-sales level, ITeSHOP basic suppression win.

As a result, the capital is beating the drum to hold hair hair Qi?

Moreover, looking at the milestone timeline of “Farfetch”, it seems to be obvious that what Farfetch is doing is less like a fashion business and more like a “fashion capital game”. The operation in China, from the point of view of many netizens who have consumed it in depth, is not grounded at all.

More like, the fashion circle everyone together play a scene, earn capital receiver money, and attention is not very on the user.

the acquisition of Browns, a brand of handmade stores.

acquiring New Guards Group, which owns Off-White, Ambush, and Palm Angels.

Acquired Stadium Goods, a sneaker resale platform.

At first glance it appears to have created a trendy fashion business empire and built multiple barriers. In actuality, Fafaqi’s management can tell it not to spend money foolishly if it randomly draws an old fan from Supreme Intelligence Network to ask about the market, which is a “receiver” behavior… And do you see? These brands acquired by Fafaqi all have one thing in common, maybe the comment section.

As a result, just when the guys are waiting to eat Fa Faqi’s bankruptcy melon, with the “Korean Amazon” known as South Korea’s cross-border e-commerce business Coupang Monday released an announcement, plans to buy Fa Faqi and its affiliates assets for 500 million U.S. dollars.

Don’t ask xdm, another partner who’s not quite related to the main business area of almost, but is very rich, got into the game ….

Fafaqi falls another 35% after Conpang’s takeover plan is announced and Coupang Inc’s shares are down 5.11% ……

Once the deal was completed, Fafaqi was delisted from the NYSE~

But people in the business also have another way of saying that, despite the $500 million take, it actually counts as bankruptcy.

It’s just that the law now allows for negotiation with creditors first, then capital injection, default, and acquisition. It used to go into government trusteeship, appoint a trustee, find a buyer. Fully marketizing something that is administrative probably doesn’t change the end game of farfetch being ‘bankrupt’.

Although the $500 million bridge loan allowed Farfetch to avoid bankruptcy, the company still has about $2.8 billion in financial debt, including convertible notes, over $1 billion in term loans, and more.

The criteria for bankruptcy is that liquidity dries up, debt restructuring and financing needs to be completed, and shareholders are shuffled around, so many are speculating that after this acquisition is completed, many are speculating that the ‘Farfetch’ owner should be out of the picture soon?

One last question for all of you, have you ever used Fafaqi? How was it?