// This is a longer post from a guy who lost big today // Farfetch $ftch
Not going private, no buyout offer just a sneaky fuck you to everybody except the CEO himself, who safed himself on the cost of tens od thousands of shareholders.
Farfetch going Chapter 11 would've meant liquidation, but the CEO would have lost control. So what did he do? He ran it to the ground and found a way to leverage fuxkint UK law to snatch all the assets for pennies on the dollar through a pre-pack deal. José Neves gave himself and Coupang billions of dollars of Investors cash in the form of all Farfetch businesses and assets.
I for myself didn't see this play coming and thought Chapter 11 was the worst option, which was only possible if they lied on their balance sheets and prior guidelines.
Apparently the $ftch CEO found a real banger of an option. The market could've believed that there are still hundreds of millions of cash in the bank, assuming the last official statement was correct. Even the UBS Banker told in his guideline that he believed Farfetch has enough cash for next year. Apparently there wasn't, cause Neves made it disappear. Who knows... For sure the people who financed this didn't know, except maybe those who were smart enough to give loans instead of buying stock.
This whole blackout and everything in between is a first for me. I've most probably lost hundreds of thousands of dollars I believe I would have recouped even in a Chapter 11. The data still isn't visible in my stock balance because of the halted trading.
On a nice side note... Many who had the option to trade pre-market through superior brokers (#xtb you suck in that regard+ options) offloaded their stock before the market opened and the news was published.
Apparently the real or hidden financials were so bad that no other had than an Insider had the guts to go in or Neves just didn't like other offers which could have rescued the shareholders, because he would have lost his CEO role.
In my humble opinion all that happened in the last couple of months and especially the grand finale of this drama screams fraud and was preplanned. They can't be possibly so bad.
During the last couple of weeks one wondered how it's possible that no one connected to Farfetch and especially José Neves has the guts to inform their Investors. Now you know why. They knew, but just don't have the slightest of a backbone.
Who will force everybody that helped scamming the shit out of stakeholders to pay the price for it? Who will make Farfetches management/board/CEO pay for their sins?
I've never run a publicly listed company. Always built for profit. Never took on loans or Investors in my biggest endeavours, but instead lived poorly to finance everything I've done.
In situations like these you ask yourself why you're making your life so hard... are you dumb for trying to build real businesses instead of playing the "raising money out of thin air" game?
At times like these, even after all those years of doing business I sometimes have to remind myself about the why.
I ask myself: What is the price of being able to honestly look into other peoples eyes you made business with and not hate yourself?
For all the guys who lost something today... Get your sleeves up and get to work. Don't let this moment define you. Learn, adjust and find a way to create value for yourself and your communities in the future. Whining around doesn't solve problems. Don't let this fuckers define what you do, how you feel or whatever. Don't give them any power over you.
To all former Farfetch employees who lost something today. If you knew more than regular stockholders and kept quiet I wish you mercy. If you didn't and got fucked over write me a PM. Maybe there is a chance to get one back at your former management in the near future with a superior Marketplace OS by getting them to zero this time.
Link to Farfetches official IR:
https://t.co/S4s5sqv26o
Farfetch $FTCH resolution:
- Company securing rescue funding
- Shareholders wiped out
- Board dissolved
- Likely litigation against founder until end of times
- Deal with Richemont terminated
- Investment case was too farfetched after all.
https://t.co/q1dK5REZ37
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