Richemont has agreed to sell its struggling digital business Yoox Net-a-Porter to online retailer Mytheresa, drawing a line under a failed venture that has cost the Swiss luxury group billions of euros.

Michael Kliger, CEO of Mytheresa, said the deal will transform the e-commerce platform into a "pre-eminent, multibrand, digital luxury group" with a potential gross merchandise value of 4 billion euros.

Rather than offloading the lossmaking online fashion platform, the Swiss luxury goods group has taken on a 33% share in Mytheresa to take Yoox Net-a-Porter off its hands. But Richemont will retain a significant say in the business.

By John Revill ZURICH (Reuters) -Cartier owner Richemont has agreed to sell its loss-making Yoox Net-A-Porter online fashion and accessories business to Mytheresa, ending the search for a new owner after the collapse of a previous deal last year.

In a significant move, Mytheresa has announced the acquisition of Yoox Net-a-Porter (YNAP) from Swiss conglomerate Richemont.

Mytheresa, Net-a-Porter and Mr Porter will form YNAP’s luxury division, while Yoox and The Outnet will be run separately, and YNAP’s white label division discontinued

The rumors had been circulating for a while, but now it’s official: Mytheresa wants to acquire industry peer Yoox Net-a-Porter from Richemont. This will create a “leading, global, multi-brand digital luxury group”,

Richemont has come to an agreement for Mytheresa to acquire its online YNAP business, including Net-A-Porter, Mr Porter, Yoox and Outnet brands.

Luxury e-tailer Mytheresa has successfully acquired the entirety of competing platform Yoox Net-a-Porter (YNAP) from its former owner Richemont in a €555 million cash and no-financial-debt deal. In exchange for 100% of YNAP,