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Update 5:20pm: Adds FarFetch says it won’t announce Q3 results on Wednesday.
Farfetch (NYSE:FTCH) soared 23% amid a report that the founder of luxury fashion site may be looking to take it private.
Jose Neves is said to be in talks with bankers and top shareholders, including Cartier-owner Richemont (OTCPK:CFRHF), about a potential takeover, according to a report in The Telegraph. It is believed that Neves plans to take the company private could be announced “imminently.”
Farfetch (FTCH) has a market cap of $677 million. The company’s shares have plunged 92% since the luxury fashion site went public in September of 2018.
The Telegraph report comes as Farfetch (FTCH) is scheduled to announce Q3 earnings results on Wednesday. Farfetch (FTCH) announced on Tuesday that it will not be releasing its Q3 results on Wednesday and will provide a market update in “due course.”
A Farfetch (FTCH) spokesperson declined to comment to The Telegraph and to Seeking Alpha.
Neves has a 15% stake in Farfetch (FTCH), though has a 77% of the voting rights through a dual-class structure, according to the Telegraph report. The potential take private is believed to have support of major backers, including Alibaba (BABA) and Richemont (OTCPK:CFRHF), which also owned online fashion house Yoox Net-a-Porter.
The report also follows an item from Miss Tweed earlier this month that LVMH (OTCPK:LVMHF) has been in on-and-off talks with Farfetch (FTCH) in recent months about acquiring the license to make and distribute the fashion brand Off-White.
