Richemont has found a messy way to unload its struggling e-commerce business Yoox Net-a-Porter. A new partnership with Farfetch gives both sides something they need, but also shows how weak Richemont’s negotiating position was.
On Wednesday, Compagnie Financière Richemont the Swiss company behind the Cartier and Van Cleef & Arpels jewelry brands, said it struck a deal with Farfetch and a Middle Eastern investor to sell just over half of YNAP. The transaction will allow Richemont to deconsolidate the business, and could eventually pave the way for a full merger of YNAP with Farfetch—a rival luxury e-commerce business that has grown faster in recent years.
