Resigning CEO Paul Lembrechts remains tied to FNG: a new CEO has not yet been found. Lembrechts wanted to leave after not getting a pay raise, but for the time being he remains in post
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The shareholders meeting of Belgian fashion group FNG ended abruptly on Wednesday morning: CEO Paul Lembrechts resigned after his remuneration was rejected. The future of the company is now highly uncertain.
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FNG, owner of Scandinavian online fashion store Ellos, made a loss of 77 million euros last year. Meanwhile, the management is working on a rescue plan, which will be presented later this year.
Belgian 'fallen' fashion group FNG had its alarm bells go off recently: the shareholders of the fashion group had to convene because the group's net assets had fallen to less than half of the capital.
Former fashion empire FNG, owner of Scandinavian e-commerce platform Ellos, is forced to convene an interim general meeting, but stresses that the announced relaunch is not in jeopardy.
The fallen Belgian fashion empire FNG has been given a (small) second life, with e-commerce company Ellos as the only remaining activity. The shareholders have agreed to the relaunch plan, in which the founding trio has been completely sidelined.
Ellos may be the only remaining star of the FNG firmament, but it sure shines. The Scandinavian e-commerce platform saw its profits double during the last quarter.
In addition to the three founders and some advisers, Belgian fashion group FNG itself is now also officially a suspect in its fraud case. The fashion group is trying a restart, but it is highly uncertain whether that will succeed.
FNG may keep the e-commerce platform Ellos (for now) after all: the fashion group, formerly also the owner of Brantano, is paying the disgruntled former owner Nordic Capital 100 million euros. Together they will ensure a relaunch.
FNG wants to avoid bankruptcy in order to restart its Swedish e-commerce company Ellos Group. "If the relaunch does not take place, there is a threat of value destruction," says CEO Paul Lembrechts.
What will happen to Ellos, FNG's only remaining retail asset? The banks demand 200 million euros. Previous owner Nordic Capital starts arbitration because it now has a pack of worthless FNG shares.
FNG Holding is having serious financial difficulties. If the listed company does not find new resources, bankruptcy seems inevitable.
Belgian fashion group FNG has no intentions to take over its local competitor e5 mode, and the recent commercial partnership between the two is no stepping stone. That is FNG's message in a press release, which however raises more questions than it answers.
Belgian fashion group FNG has completed the acquisition of Scandinavian e-commerce player Ellos. For the Belgian company, the acquisition predominantly means access to a new market: home decoration.
With the acquisition of Ellos (Sweden), fashion group FNG wants to achieve synergies of up to 30 million euros. Analysts at ABN Amro, however, have raised questions about this, both in terms of financing and the actual benefit of the acquisition.