Richemont Sells YNAP Stake, Writes Down $2.7B

RAPAPORT... Richemont has sold a 47.5% stake in Yoox Net-a-Porter (YNAP) to Farfetch as it edges closer to removing the loss-making e-commerce business from its books.The Swiss conglomerate will receive shares in Farfetch in return, the group said Wednesday. It has also sold 3.2% of YNAP to Emirati businessman Mohamed Alabbar.The transaction contains options for Farfetch to acquire the remainder of the business in the future. Richemont has estimated a write-down of approximately EUR 2.7 billion ($2.7 billion) based on Farfetch's current share price. YNAP will adopt e-commerce specialist Farfetch's retail technology, while Richemont's maisons will hire retail space on the platform - a model known as "e-concessions.""Today's announcement is a significant step towards the realization of a dream I first voiced in 2015 of building an independent, neutral platform for the luxury industry that would be highly attractive to both luxury brands and their discerning clientele," said Richemont chairman Johann Rupert. "We knew back then that if we wished to control our own destiny and protect the uniqueness of the luxury industry as it was digitalized, we would need to collaborate as the task was too big to undertake on our own."Image: The Net-a-Porter e-commerce site. (Shutterstock)