Farfetch is investing $200 million in Neiman Marcus, the businesses introduced.
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UK luxurious e-tailer Farfetch is investing $200 million in Neiman Marcus to drive the swanky division retailer’s digital development, the businesses introduced on Tuesday.
London-based Farfetch is taking a minority stake in Neiman, which additionally owns the 2 Bergdorf Goodman shops in New York Metropolis. Farfetch will initially give attention to the Bergdorf web site and cell app, in response to the announcement.
Sources informed The Put up that Neiman Marcus has not too long ago explored a sale of Bergdorf Goodman. Neiman Marcus denied that it was exploring a sale of the luxurious retailer.
Particulars of the strategic partnership weren't disclosed, however Farfetch’s shares had been down by greater than 4% % on Tuesday.
Neiman Marcus emerged from chapter safety in September 2020, shedding most of its $5 billion in debt and gaining new traders.
The Dallas-based retailer has been investing in its e-commerce enterprise as extra well-heeled customers flip to on-line websites for luxurious items.
The businesses mentioned that Neiman Marcus and Bergdorf Goodman will be a part of Farfetch’s on-line market, including “taking part manufacturers” in international markets the place Farfetch does enterprise.
“I imagine the U.S. luxurious market is at a pivotal level,” José Neves, Farfetch founder and CEO mentioned in an announcement. “While the U.S. is proving to be a long-lasting supply of development for the posh trade, fueled by youthful generations who're extremely engaged with the class, companies should considerably improve their digital capabilities.”
There have been stories final yr that Farfetch and Swiss-based luxurious conglomerate Richemont — proprietor of Cartier, Van Cleef & Arpels — had been in superior talks to launch a joint e-commerce platform.
Neiman Marcus chief government, Geoffroy Van Raemdonck mentioned in an announcement, “José and the complete Farfetch staff have constructed a best-in-class expertise platform and are the best associate to assist us develop Bergdorf Goodman to be a good stronger international digital luxurious retailer.”
However some Neiman Marcus staffers and trade specialists imagine the funding will lay the groundwork for Farfetch to finally purchase Neiman Marcus Group from its present traders, Pimco, Davidson Kempner Capital Administration and Sixth Road.
“No one believes that Farfetch has one thing so distinctive that it is going to be a sport changer,” one supply near Neiman Marcus informed The Put up. “However maybe it is a strategy to trim prices in expertise, let Farfetch study extra about us after which finally turn into the proprietor.”
Present Neiman Marcus workers mentioned the deal caught them unexpectedly.
“This can be a dramatic change from what we’ve been listening to on how effectively we’ve been doing,” The supply mentioned. “Why do we have to leverage Farfetch and it’s platform? A partnership like this implies one thing is just not working.”
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