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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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.
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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.