Farfetch’s stock is trending upward in Tuesday trading after the online marketplace denied a report that said it had plans to snap up the recently bankrupt Barneys New York.
The London-based retailer saw shares pop 3.2% to $10.05 at 9:45 a.m. ET the morning, following a New York Post story that claimed Farfetch was close to sealing a deal on the purchase of the beleaguered department store chain, which filed for Chapter 11 protection early this month.
“The story is incorrect,” a company spokesperson wrote in a statement to FN. “Farfetch is not acquiring Barneys New York.”
Investors have expressed worries over Farfetch’s wider than expected second-quarter losses due to high acquisition costs and spending on its tech infrastructure. Costing $675 million, Off-White parent company New Guards Group marked the latest in the luxury fashion platform’s string of buys. (The announcement on Aug. 8 sent Farfetch’s stock down more than 40% during the extended trading session.)
It’s been one year since Farfetch filed its IPO, bringing more attention to the intersection of luxury and technology amid competition from high-end marketplace retailers like Net-a-Porter and MatchesFashion.com. In 2015, the firm took a leap into brick-and-mortar, buying the fellow London-based Browns and helping expand its digital arm. It also picked up Stadium Goods in December through a $250 million deal, giving Farfetch a portal into the swiftly growing luxury streetwear market.
Barneys’ bankruptcy occurs as rent hikes and the rise of e-commerce increasingly complicate business for brick-and-mortar veterans. Its filing, made in early August, is expected to help the company “conduct a sale process, review our current leases and optimize our operations.” It has until Oct. 24 to find a buyer or face liquidation.
Farfetch’s Stock Plummets Nearly 50% After Snapping Up Off-White Parent Company
Farfetch Is Banking on Facebook’s New Cryptocurrency to ‘Solve a Range of Fashion Industry Issues’
Bankrupt Barneys: The Retailer Owes Millions to Louboutin, Gucci and Prada
Watch FN’s interview with these top shoe players.