Yoox Net-a-Porter will reportedly shut down operations in China

There are rumors that Yoox Net-a-Porter (YNAP), the online luxury fashion retailer, is closing its doors in China to focus on areas it believes will be more profitable.

A representative from Richemont, the retailer’s parent company, confirmed the decision, saying it was part of a broader global strategy to “concentrate investment and resources in core and more profitable geographic areas.”

YNAP first entered the Chinese market in 2013 and in 2018 formed a joint venture with Alibaba, the country’s largest market. The company then launched operations in the Tmall premium pavilion, adding 130 premium products to the Chinese e-commerce platform.

Report sheds light on Richemont’s ongoing battle with YNAP; the luxury conglomerate has previously tried to sell its ownership of the retailer amid falling profits and mounting losses.

Since Coupang bought the British rival last year, a previous agreement to sell 47.5% of the Swiss conglomerate’s shares to Farfetch fell through, and the company has been looking for a buyer for YNAP.

Nevertheless, Richemont has had long-standing problems with YNAP, and investors who wanted the company to sell the ailing online retailer were monitoring it closely.