Farfetch is shutting down its white-label business unit, Platform Solutions, which provides online shopping tools for retailers.
The move comes as the luxury fashion retailer focuses on its core luxury marketplace as its operating losses drag down its new owner Coupang’s profits.
Farfetch Platform Solutions, which counted Reebok, Harrods, Paul Smith and Off-White as clients, offered commerce solutions and retail technology designed for use by brands and retailers.
Earlier this year, the firm was one of the business units affected by redundancies, as the retailer axed between 25% and 30% of its workforce as part of cost-saving measures.
At the beginning of the year, Farfetch completed the sale of its business to South Korean ecommerce giant Coupang through a pre-pack administration deal worth $100m.
In February, Coupang founder, chairman and CEO Bom Kim replaced the luxury retailer’s founder and CEO José Neves.
The decision to shutter Platform Solutions comes as Farfetch streamlines its business under Coupang’s ownership.
Its operating losses have weighed on Coupang. The South Korean conglomerate posted a net loss of $105m for the second quarter of this year, marking its first loss in two years.
In a statement to Business of Fashion, Farfetch said: “Our disciplined investment and operational excellence enable us to deliver exceptional shopping experiences to our customers, providing them with the best selection, service, and savings.”
“With our focus on the Farfetch marketplace, we will continue building the best luxury experiences for customers, brands, and boutiques.”
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