It was recently announced in a press release that Farfetch, the high-end online brand, purchased the Milan-based New Guards Group. Farfetch purchased 100% of New Guards Group’s shares for $675 million USD, and now they owner the licenses of brands like Off-White™, Heron Preston, Palm Angels and Marcelo Burlon County of Milan.
According to HYPEBEAST, there was a bit of clarification needed in the matter. In a statement to HYPEBEAST, Off-White™ clarified the brand’s position: “In connection with the news today that Farfetch is acquiring New Guards Group, Off-White™ would like to clarify our ownership structure. Off-White™ LLC, which is controlled by Virgil Abloh, owns the trademark of our brand, and NGG is our exclusive licensee pursuant to a multi-year agreement. The New Guards Group transaction with Farfetch will not affect Off-White™ day to day operations as the New Guards Group team will become part of Farfetch. We look forward to our ongoing work together.”
Additionally, HYPEBEAST notes that “This purchase is Farfetch’s first major step into direct fashion engagement, as the platform currently serves as a web store for third-party brands, as opposed to in-house product. Indeed, Farfetch affirms that this acquisition will add a ‘Brand Platform’ layer to the Farfetch platform,” thus “extending the Company’s proposition upstream by expanding its capabilities to now include design, production and brand development.”
All of this supports the idea that Farfetch is looking to try something new, perhaps initially starting with roping in progressive and already successful talent. “Farfetch will directly support new creative talent to unlock their vision and potential,” the release continues, explaining that this plan will eventually “enable the ‘Brands of the Future’.”
“The addition of New Guards’ brand platform brings a creative and industrial dimension to our suite of capabilities which, combined with our community of more than 650 boutiques, enables us to power and promote both new and existing creative names in the luxury industry to build the brands of the future,” said José Neves, CEO and Co-Chair, Farfetch.
In response to news of the purchase, Farfetch stock has dropped nearly 40%, falling from 18.25 USD per share to $10.10 USD in just under an hour and 20 minutes.
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