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PARIS, France — Online fashion retailers Yoox and Richemont's Net-a-Porter are trying to resuscitate merger talks that took place more than a year ago to better fight cut-throat competition, industry sources told Reuters.
UK-based Net-a-Porter which is estimated to be worth between 1.3 and 1.5 billion euros ($1.64 billion), is one of Richemont's fastest growing companies but it has yet to make a profit because of the significant investments it made in the company.
Italy's Yoox, which is also enjoying double-digit growth, is profitable and carries a relatively similar valuation to Net-a-porter with a market capitalization of 1.32 billion euros.
"It might work this time because Net-a-Porter is in better shape today than it was a year and a half ago and therefore it is more amenable to do deal today than back then," one of the sources said. Richemont and Yoox declined to comment.
By Astrid Wendlandt; editor: Geert De Clercq.
