(Reuters) – Farfetch Ltd, an online retailer of luxury fashion products, said on Tuesday it will make an investment of up to $200 million in Neiman Marcus Group to support online growth at the high-end department store chain.
The announcement comes as Neiman Marcus, which was forced to file for bankruptcy in the wake of the pandemic, looks to beef up its online business like several retailers who have been pivoting to e-commerce.
Under the partnership, Farfetch will power the website and mobile application of Bergdorf Goodman, the New York-based luxury department store that Neiman Marcus acquired in 1972.
Both Bergdorf Goodman and Neiman Marcus will join Farfetch’s online marketplace, adding brands in key markets globally, the companies said.
“Whilst the U.S. is proving to be a long-lasting source of growth for the luxury industry … businesses will have to significantly upgrade their digital capabilities … to meet these new customer expectations and stay ahead,” Farfetch CEO José Neves said.
Farfetch joins Neiman Marcus’ existing investors, which include PIMCO, Davidson Kempner Capital Management and Sixth Street.
(Reporting by Deborah Sophia in Bengaluru; Editing by Shounak Dasgupta)
