FNG is going to file for bankruptcy. The relaunch that the fashion company was working on turned out to be impossible. The proceeds of a sale or IPO of the sole business activity, the Swedish online store Ellos, was no longer sufficient to repay the creditors.
Three companies will file for bankruptcy: FNG nv, FNG Finance Belgium bv and FNG Beheer NL bv, says a press release.
“As a result of, among other things, the worldwide decline in the valuation of the e-commerce sector, the proceeds of a possible IPO or a sale of the sole asset, Ellos Group, would meanwhile be significantly lower than what is needed to repay creditors. The sustainable restart, which has been worked on since mid-2020, has thus been made impossible.”
Waiting longer to file for bankruptcy would lead to additional costs, according to FNG, and there are currently no resources for this. Additional financing is also of no avail, it sounds. After the bankruptcy of the Benelux activities, FNG only comprised Ellos.
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