Farfetch founder José Neves has reportedly announced his exit from the CEO post as part of a recent leadership shake-up within the company. This decision comes in the wake of Farfetch’s acquisition by South Korea’s Coupang, a move that has brought significant changes to the leadership team. While the official announcement is pending, reports from industry publications like WWD and Business of Fashion suggest that Neves will be transitioning into a consultancy role rather than completely leaving the business.
In addition to Neves, key members of the leadership team at Farfetch, including Elizabeth Von Der Goltz and Kelly Kowal, are also said to be stepping down as part of the shake-up. The day-to-day management of the company will now fall under the leadership of Coupang founder Bom Kim and the remaining executive team. With further job cuts on the horizon, Coupang is expected to streamline Farfetch’s operations and prioritize its core business as a luxury marketplace for high-end fashion retailers.
Since its founding in 2008, Farfetch has been a pioneer in the online luxury sales industry, especially during the pandemic when brick-and-mortar stores were facing closures. However, challenges emerged post-pandemic with the resurgence of in-store shopping, catching many online retailers like Farfetch off guard. Critics attribute the company’s financial struggles to its expansion into non-core areas, like the acquisition of New Guards Group and unsuccessful ventures such as a beauty segment that was later discontinued.
Despite ambitious plans like the proposed acquisition of Richemont’s Yoox Net-A-Porter business, Farfetch encountered financial hardships that led to rumors of privatization and urgent talks to secure funding before the acquisition by Coupang was finalized. The departure of Neves from the CEO role, while not uncommon among founders, marks a new chapter for Farfetch as it navigates a new ownership structure and potentially refocuses its business strategy.
For more information on this topic, check out the Business of Fashion article or the WWD coverage.
