Farfetch, the online luxury retailer, has been acquired by Coupang, the South Korean e-commerce giant, in a deal that will provide Farfetch with $500 million in urgent financing.

The deal will also end Farfetch’s partnership with Richemont, the Swiss luxury group, and its plans to buy a stake in Yoox-Net-A-Porter, a rival online platform.

Farfetch said the transaction was part of an effort to improve its liquidity and ensure its continued operation amid challenging financial conditions.

The company has been struggling with high debt and losses, and has seen its share price plummet by more than 80 per cent since its initial public offering in 2018.

As part of the deal, Farfetch will become a private company and its founder, José Neves, will remain as the sole board member and CEO.

Coupang, which is backed by SoftBank and is one of the largest e-commerce companies in Asia, said it was excited to join forces with Farfetch and to offer a better customer experience for luxury shoppers worldwide.

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