October 28, 2020

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Court rejects question about appointment of provisional administration …

Court rejects question about appointment of provisional administration ...

The court has decided not to appoint provisional administrators for the fashion group FNG. Two unions and one employee had called for this, but in the meantime former VRT chief Paul Lembrechts was appointed CEO on an interim basis and the founders resigned. The Court considers that the necessary conditions for the appointment of another administrator were not met.

FNG’s unions have been calling for the court to take a closer look at the fashion company for several weeks. The company has established several constructions and businesses in Switzerland, Luxembourg and Asia, and the stock exchange regulator FSMA is also seeking clarification. The unions and an employee asked the court to appoint a provisional administrator. That question was rejected by the General Court. The question of trade unions was declared inadmissible and the question of the worker was declared unfounded because the conditions for the appointment of a provisional administrator were not met.

Last Wednesday, the Mechelen Business Court ruled that three companies of FNG – Brantano, FNG International and Market Retail Belgium – will be protected from creditors by 5 October. A recovery plan must be on the table by 4 September and will be voted on at a special meeting on 29 September.

Meanwhile, the Antwerp court is investigating the three founders of the FNG Group on the instructions of the stock exchange regulator FSMA. This investigation would not concern FNG, as the three have stepped aside and are no longer part of the company.