Ceo Paul Lembrechts previously announced the news during a special works council. FNG has not been able to find financing on time. The banks did not want to assist and, according to the fashion group, claimed some outstanding loans and blocked the bank accounts. “As a result, several companies of the FNG group no longer have the necessary means to pay and to continue their activities.” According to De Standaard, the bankruptcy petition applies to Ginger, Fred and Ginger, CKS, Concept Fashion, Expresso Belgium and Market Retail Belgium, among others.
In a press release, FNG reports that ‘a series of Dutch companies’ has applied for deferment of payment. The FNG spokesperson tells RetailNews that it concerns eight companies: Miss Etam Operations, Steps Retail, Fashion houses Claudia Sträter, Expresso Fashion Web, Expresso Fashion, New Fashions, Theo Henkelman Schoenen and FNG Retail Services. No insolvency proceedings have been filed for the parent company FNG NV and the Swedish activities (Ellos).
FNG has been in serious financial difficulties for a long time. Last year, the group suffered a net loss of nearly three hundred million euros and built up a mountain of debt of many hundreds of millions of euros. The management, consisting of the three founders, was replaced earlier this year. In June, FNG reported that dozens of stores would close in Belgium. In January it was already announced that in the Netherlands all Promiss stores and 38 Steps stores are closing. That has since happened.