Luxury online retailer Farfetch acquired Italian fashion holding company New Guards Group on Thursday in a $675 million deal. Farfetch is an online luxury fashion retail platform that sells products from over 700 brands from around the world. It was founded in 2007 by a Portuguese entrepreneur.
According to sources, Farfetch is now the proud owner of 100 percent of the Milan-based parent company of buzzy luxury street wear brands, Heron Preston and Off-White as well as the Los Angeles-based company Palm Angels.
Off-White is a fashion label founded by American designer Virgil Abloh. The company was founded in Milan, Italy in 2012, and now has 24 stores all over the world. According to sources, a spokesperson of the luxury retail said that ” it will help to build a layer to the company and help build a brand of the future, in part by expanding its capabilities.”
Farfetch CEO José Neves said in a statement, “The brands of the future will have three core elements. First, a creative taste maker able to leverage digital channels to engage a global community; second, best-in-class design, planning and manufacturing; and third, direct-to-consumer global online distribution, complemented by a connected wholesale presence in the most prestigious physical boutiques.”
He further added, “This is what the combination of Farfetch and New Guards brings to the industry. Together, we can not only continue to develop New Guards’ current portfolio, but will also be uniquely positioned to bring many new talents to life with the combined layers of the Farfetch platform.”
According to sources, the brand Off-White confirmed that Off-White LLC is controlled by Abloh and will be owning the trademark of the brand. “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.”
Previously, Farfetch invested in purchasing a New York-based Stadium Goods Sneakers for $250 million in December 2018.