Farfetch, Portugal’s ‘first unicorn’, in $500m rescue deal // Brazilian mum speaks about twins' expensive medical treatment
Portuguese news in English on Tuesday, December 19, 2023.
Merry Christmas: I won't be sending out a newsletter next week but I'll see you in the new year. Boas festas!
Farfetch, Portugal’s ‘first unicorn’, in $500m rescue deal
The Coupang group, often referred to as the “Amazon of South Korea”, has reached an agreement to take control of the struggling Portuguese company Farfetch for $US500 million, Público reports. The UK-headquartered fashion giant founded by Portuguese José Neves was insolvent and on the brink of collapse, according to the terms of the deal and declarations made to the market. The company will now take on more short-term debt, sell shares, go private and eventually, be liquidated, it said in an update to markets yesterday, which revealed investors would lose everything. The board said it was disappointed it couldn’t save Farfetch Limited itself but pleased “FF PLC has successfully secured a solution that ensures the continued operations of its business and that it will continue to serve the network of brands, boutiques and consumers depending on the Farfetch Marketplace every day”.
Beyond losing their shares — which have fallen from a 2021 peak of €73 to about 40 cents today — it’s unclear what the deal will mean for the company’s thousands of workers, many of whom are based in Portugal. Earlier this month, some workers spoke of job losses of between 1700-2000 workers, about 25% of the number employed at the end of last year, Público reports.
Brazilian mum speaks about twins’ expensive medical treatment
The mother of the Portuguese-Brazilian twins who acquired Portuguese citizenship and came here to take medication reportedly worth millions of euros has broken her silence in an interview with RTP. Daniela Martins said some sort of influence from the president's office was spoken about in the corridors of Hospital Santa Maria, where the treatment was administered. But she said she only asked for help “in an indirect way” from the son of President Marcelo Rebelo de Sousa, Diário de Notícias reports. Martins said she sent emails to “everyone” in a “cry for help” and that some of the emails were sent to people she didn’t have any control over. She also insisted there was no waiting list, meaning her children didn’t pass in front of anyone to get the treatment.
The president of the Executive Board of the North Lisbon University Hospital Centre this week confirmed the first request for an appointment for the twins was made by the office of the Secretary of State for Health, Lusa reports. That was the only exception to normal processes regarding the case, she told the Health Commission, in parliament, adding that it wasn’t clear who exactly made the phone call. Marcelo has said his son contacted him about the case but denied having any influence on the process.
The commission also heard that the price paid for the Zolgensma spinal muscular atrophy treatment was “substantially” lower than the €2 million quoted in recent reports. The payment is made on a “risk-share” agreement based on real-world results, with the company swallowing the costs of unsuccessful treatments.
Governing Socialist Party selects new leader
Pedro Nuno Santos has been elected the new leader of the Socialist Party (PS), guaranteeing that he’s not “the leader the right would want”, Lusa reports. The new secretary-general declared he wanted to start a “new phase, a new cycle”, with a project of “continuity, but, overall, change”. He gave a speech on Saturday after being selected and spoke to journalists on Sunday after meeting with his predecessor, outgoing Prime Minister António Costa.
Lisbon Mayor Carlos Moedas, who is from the opposition Social Democratic Party (PSD), questioned what new ideas Nuno Santos was bringing to the table and what PS could offer voters after so many years in power, Lusa Reports.
The fallout from the investigation that provoked Costa’s resignation continued this week with a public spat between him and Attorney-General Lucília Gago, Diário de Notícias reports. Costa said he “probably” would not have resigned were it not for the final paragraph of the announcement regarding the operation, which stated he was under investigation in a Supreme Court Process. Gago hit back at the “attacks” on a judiciary that would remain “unbreakable and unscathed” by those who wanted to minimise, discredit or even partially destroy it.
In brief
Human rights watchdog urges Portugal to address dysfunctional police complaints system. Europe’s anti-torture committee said evidence was often not quickly transmitted to higher-ups and highlighted incidents of alleged verbal abuse against prisoners, including racist slurs. (Reuters, in English)
Four-day work week reduced exhaustion levels by 19%. In a Portuguese study of 21 businesses and 332 workers, the percentage of people who found it difficult to balance work and family fell from 46% to 8%. Most said they’d need a 20% salary bump to move back to five days a week. (Público)
Parliament approves right to gender self-determination in schools. Schools should identify someone or multiple people to whom students can communicate their gender identity. (Público)
Foreigners contribute seven times more to Social Security than they receive. A young, working population, informal work contracts and a lack of information explain the discrepancy between contributions and social benefits. (Público)
Cruise ships will finally have to pay the Lisbon tourist tax. From January, every cruise operator will have to pay €2 per passenger who alights in the capital, generating €1.2 million a year, the Port of Lisbon has guaranteed, putting an end to a seven-year exemption. (Público)
On a lighter note
What is the meaning of Christmas, really? If the claims of various small Portuguese villages are anything to go by, it’s about being bigger, better and more beautiful than anyone else. After the biggest Christmas tree in Portugal? That would be the 55-metre monster in Ermesinde, outside Porto, according to Público. How about the “most beautiful Christmas village”? That, reports Público again, would be Cabeça, in Serra da Estrela, which promises to be the “most genuine and sustainable”, with 100% natural decorations. And what if you want to get really niche and find the country’s “biggest natural nativity scene”? Público has you covered there too, pointing you towards Sabugal, in the Guarda district, which will be open for visits until January 7. And if you want the biggest bonfire in Portugal, Olá Daniela has you covered. Merry Christmas!