Farfetch Limited (NYSE:FTCH) shares sank further on Wednesday after luxury conglomerate Richemont said it will not inject any cash into the online luxury retailer amid reports that the former is exploring going private.
Farfetch founder Jose Neves is reportedly considering the move after a troubled New York Stock Exchange listing for the British company.
Richemont, owner of jeweler Cartier, has a deal in place to sell its Yoox Net-A-Porter online fashion and accessories business to Farfetch.
Richemont clarified that it has no financial obligations toward Farfetch and does not foresee lending or investing in the company.
That could mean that the likelihood of the Farfetch deal, announced in August 2022, is diminishing, according to analysts.
Farfetch said it would delay announcing its third-quarter results, and previous forecasts or guidance are no longer reliable.
Shares of Farfetch were down 40% in early trading at $1.25.