Richemont fell on the Zurich stock exchange on Monday after announcing the end of its agreement with Farfetch for the sale of Yoox Net-A-Porter (YNAP), its loss-making online fashion sales subsidiary.

The luxury goods group's share price lost 1.8% at the end of the session, one of the biggest declines on the SMI index.

In a press release, Richemont, Farfetch and Symphony Global, an investment vehicle owned by Emirati businessman Mohamed Alabbar, said they had terminated their agreements signed last year.

The agreement included the sale of a majority stake in YNAP to Farfetch and Symphony Global, as well as the adoption of Farfecth's technology platforms by most of the Richemont and YNAP houses.

But the deal appeared to be in serious jeopardy following rumours last month of a possible delisting of Farfetch.

In its press release, Richemont considers it reasonable to assume that its $300 million investment in convertible bonds issued by Farfetch as part of their partnership will not be repaid.

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