What will happen to Browns after the Coupang-Farfetch deal?

Farfetch, a prominent player in the luxury fashion retail sector, could still be evaluating a sale of its subsidiary, Browns, after its recent deal with South Korean Coupang. 

Farfetch’s acquisition of Browns from the Burstein family in 2015 marked a significant, forward move by the company toward integrating digital and physical retail experiences. In 2021, Farfetch leveraged the 53-year-old department store to showcase its “store of the future” concept, integrating connected mirrors and app-based functionality. London-based Browns is credited with bringing designers like Missoni, Alaïa and Calvin Klein to U.K. shores. In 2022, it reportedly did over $34.5 million in e-commerce revenue and a modest amount of sales via its store in London.

On December 20, Farfetch — which went public in 2018 — announced that, effective immediately, it would transition to being a private entity, led by founder and CEO José Neves. But starting on April 30, Farfetch will become a Coupang subsidiary. If it doesn’t comply with the terms of the deal, Farfetch must repay the loan of $500 million from Coupang at an annual interest rate of 12.5%. The terms of the agreement did not include any mention of what would happen to Browns.

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