Fashion
Alain Hellebaut, CEO of toy chain Maxi Toys, has been appointed executive chair of FNG. Hellebaut thus takes over the responsibilities of resigning CEO Paul Lembrechts. In the meantime, he will also remain at the helm of the toy chain.
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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
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.
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.
General
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.
About fifty FNG bondholders are going to court: they are suing both the fashion company and the three founders, who they claim have deliberately deceived them.
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 plus size fashion label Paprika takes over the Dutch FNG daughter brand Promiss from entrepreneur Martijn Rozenboom. The company wants to turn it into a fully digitalized brand.
Investigations into bankrupt fashion group FNG are now also leading to the Netherlands: over the years, the retailer has channelled 110 million euros to a dubious fund, without any explanation.
