PARIS, Dec 13 Reuters A winding down of the postpandemic spending frenzy is hitting European luxury companies from LVMH to Kering, but none more than Farfetch, an ecommerce pioneer.

Founded in 2007, Farfetch is one of the few global online retailers of highend merchandise from a range of labels, such as a 5,690 Saint Laurent wool coat and a 5,900 white gold De Beers diamond necklace.

Lately, Farfetch has been touting discounts of up to 45 off clothing and accessories from a number of smaller brands Diesel, Balmain, Lanvin and Balenciaga among them.

Its shares plunged over 50 on Nov. 28 after the company postponed its quarterly earnings report, saying that prior financial guidance should no longer be relied upon.

On Tuesday, Moody39;s downgraded the company39;s credit rating deeper into junk territory and put it on review for a further cut, citing its deteriorating financial position.

Farfetch39;s woes reflect more than the economic headwinds dampening aspirational shoppers39; demand for new fashions.

Its longerterm challenge is a drive among labels to seek greater control of their products, usually at their own retail boutiques a strategy aimed at avoiding discounts that third party retailers like Farfetch rely on to attract shoppers.

Powerhouse brands Chanel, Hermes, and LVMH39;s Louis Vuitton and Dior have led the charge to control all aspects of selling their products, while Burberry is reducing the number of third party retailers carrying its products and…