The Belgian stock watchdog FSMA has suspended the share of retail company FNG on the stock exchanges in Amsterdam and Brussels. According to the company, known from fashion chains such as Steps, Brantano and Miss Etam, this was done at the request of the supervisory board of FNG itself. The company is suffering greatly from the corona crisis and regulators have asked questions about the books from a few years ago.
In a statement, FNG refers, among other things, to an earlier press release in which it was already explained that the corona crisis has an important impact on the results and activities. Despite the reopening of the stores from May 11, FNG is not yet able to fully estimate the concrete consequences, but the financial impact is likely to be considerable.
Furthermore, with regard to the 2018 annual report, the FSMA has requested clarification regarding a number of transactions that took place in 2018. Since the required information cannot yet be provided internally, the Supervisory Board has requested the FSMA to suspend the share price, so that the necessary documents and information can be collected in the meantime and the market can be fully informed.
The share will remain suspended until FNG can provide more concrete information. FNG is currently working on a thorough analysis of its figures and activities, in order to be able to work out a realistic future plan. The company expresses its intention to provide more information in the week of May 18. In the meantime, no further announcements will be made about this.
It has been restless around the retail business lately. It was recently announced that CEO Dieter Penninckx resigned for medical reasons and transferred the management to Manu Bracke, who previously was the operational director. Due to the corona crisis, FNG had previously postponed the publication of its annual report. There were also recent reports in the Belgian media that the skyrocketing debt of the company raises doubts about the survivability of the retailer. FNG would therefore like to postpone the next interest payment on its debts, among other things.
Peretz M. is an accomplished economist and financial journalist with a deep understanding of the global economy and financial markets. He is a regular contributor to EconomicInform, where he provides expert analysis and commentary on current economic trends and events. With a strong educational background in economics, Peretz has a talent for breaking down complex economic concepts for a general audience and is able to provide insightful perspectives on a wide range of economic issues.