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.
Timing remains unchanged
FNG will convene an extraordinary general meeting on 25 August to decide on the proposed recovery measures. A formal matter, because in practice, the recovery measures proposed by the Board of Directors are already partly in place. FNG entered into a settlement agreement with Nordic Capital, the previous owner of Ellos, which also included agreements on a strategic capital review.
However, the Board of Directors of FNG NV has now determined that the company’s net assets have fallen to less than half of the capital, and must therefore apply the so-called ‘alarm bell procedure’ as prescribed by the Companies and Associations Code. However, the previously announced timing is maintained, the company says.
“In doing so, we reiterate our objective to publish the 2020 figures together with the auditor’s report by the end of August 2021. In the meantime, we have provided all the necessary documents to the auditor for verification. If we can actually publish the 2020 annual report at the end of August, we will be able to hold another general meeting at the end of September at which the 2020 figures and report will be presented for approval. Our ambition remains to move forward quickly, but we continue to put accuracy, transparency and correctness before speed. The convening of this interim shareholders’ meeting also bears witness to this,” says Executive Chairman Paul Lembrechts.