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Fashion Network
3 days ago
- Business
- Fashion Network
SMCP announces forced return of illegally transferred 15.5% stake
The 15.5% stake in SMCP (Sandro, Maje, Claudie Pierlot and Fursac) that had been improperly transferred to a trust in the British Virgin Islands by its Chinese shareholder, who defaulted in 2021, has now been returned to the Luxembourg holding company that held it, management said on Monday. "The return of this stake clarifies the shareholding situation of SMCP, which remains focused on implementing its profitable growth strategy based on the desirability of its brands, its operational agility, and its efforts to control costs," the French high-end, listed textile group said in a statement. In 2017, SMCP's majority shareholder at the time of its IPO was a Chinese conglomerate, Shandong Ruyi, via a Luxembourg-registered investment vehicle, European TopSoho (ETS). However, the heavily indebted ETS, which held a 53% stake, defaulted and, in 2021, lost most of the capital to its creditors within the GLAS entity. GLAS thus recovered 29% of the capital, leaving 8% to ETS. But European TopSoho had previously sold a stake of around 16% to Chenran Qiu, the daughter of Shandong Ruyi's founder, held in the Dynamic Treasure Group trust in the British Virgin Islands. This stake was sold for one euro "even though (its) market value was in excess of 80 million euros at the time," as Oddo analysts pointed out in a note in July 2024. For several years, GLAS had been seeking to regain access to this part of the capital, and judging the sale procedure to be irregular, it took legal action and obtained a favourable ruling from the British courts (DTC being a company incorporated under British law) in 2024, ordering the repatriation of the ETS shares to Luxembourg. However, a source close to the case told AFP that the repatriated shares were held in a bank account in Singapore, which led to the involvement of the Asian city-state's judiciary. SMCP announced on Monday that "following the decision of the Singapore High Court on July 4, 2025, the 15.5% stake in SMCP that had been sold in 2021 to Dynamic Treasure Group was returned to European Topsoho on August 11, 2025," paving the way for a capital clarification of the group. This article is an automatic translation. Click here to read the original article.
Fashion Network
3 days ago
- Business
- Fashion Network
SMCP announces forced return of illegally transferred 15.5% stake
The 15.5% stake in SMCP (Sandro, Maje, Claudie Pierlot and Fursac) that had been improperly transferred to a trust in the British Virgin Islands by its Chinese shareholder, who defaulted in 2021, has now been returned to the Luxembourg holding company that held it, management said on Monday. "The return of this stake clarifies the shareholding situation of SMCP, which remains focused on implementing its profitable growth strategy based on the desirability of its brands, its operational agility, and its efforts to control costs," the French high-end, listed textile group said in a statement. In 2017, SMCP's majority shareholder at the time of its IPO was a Chinese conglomerate, Shandong Ruyi, via a Luxembourg-registered investment vehicle, European TopSoho (ETS). However, the heavily indebted ETS, which held a 53% stake, defaulted and, in 2021, lost most of the capital to its creditors within the GLAS entity. GLAS thus recovered 29% of the capital, leaving 8% to ETS. But European TopSoho had previously sold a stake of around 16% to Chenran Qiu, the daughter of Shandong Ruyi's founder, held in the Dynamic Treasure Group trust in the British Virgin Islands. This stake was sold for one euro "even though (its) market value was in excess of 80 million euros at the time," as Oddo analysts pointed out in a note in July 2024. For several years, GLAS had been seeking to regain access to this part of the capital, and judging the sale procedure to be irregular, it took legal action and obtained a favourable ruling from the British courts (DTC being a company incorporated under British law) in 2024, ordering the repatriation of the ETS shares to Luxembourg. However, a source close to the case told AFP that the repatriated shares were held in a bank account in Singapore, which led to the involvement of the Asian city-state's judiciary. SMCP announced on Monday that "following the decision of the Singapore High Court on July 4, 2025, the 15.5% stake in SMCP that had been sold in 2021 to Dynamic Treasure Group was returned to European Topsoho on August 11, 2025," paving the way for a capital clarification of the group.
Fashion Network
3 days ago
- Business
- Fashion Network
SMCP announces forced return of illegally transferred 15.5% stake
The 15.5% stake in SMCP (Sandro, Maje, Claudie Pierlot and Fursac) that had been improperly transferred to a trust in the British Virgin Islands by its Chinese shareholder, who defaulted in 2021, has now been returned to the Luxembourg holding company that held it, management said on Monday. "The return of this stake clarifies the shareholding situation of SMCP, which remains focused on implementing its profitable growth strategy based on the desirability of its brands, its operational agility, and its efforts to control costs," the French high-end, listed textile group said in a statement. In 2017, SMCP's majority shareholder at the time of its IPO was a Chinese conglomerate, Shandong Ruyi, via a Luxembourg-registered investment vehicle, European TopSoho (ETS). However, the heavily indebted ETS, which held a 53% stake, defaulted and, in 2021, lost most of the capital to its creditors within the GLAS entity. GLAS thus recovered 29% of the capital, leaving 8% to ETS. But European TopSoho had previously sold a stake of around 16% to Chenran Qiu, the daughter of Shandong Ruyi's founder, held in the Dynamic Treasure Group trust in the British Virgin Islands. This stake was sold for one euro "even though (its) market value was in excess of 80 million euros at the time," as Oddo analysts pointed out in a note in July 2024. For several years, GLAS had been seeking to regain access to this part of the capital, and judging the sale procedure to be irregular, it took legal action and obtained a favourable ruling from the British courts (DTC being a company incorporated under British law) in 2024, ordering the repatriation of the ETS shares to Luxembourg. However, a source close to the case told AFP that the repatriated shares were held in a bank account in Singapore, which led to the involvement of the Asian city-state's judiciary. SMCP announced on Monday that "following the decision of the Singapore High Court on July 4, 2025, the 15.5% stake in SMCP that had been sold in 2021 to Dynamic Treasure Group was returned to European Topsoho on August 11, 2025," paving the way for a capital clarification of the group. This article is an automatic translation. Click here to read the original article.
Fashion Network
05-07-2025
- Business
- Fashion Network
SMCP: Towards a resolution of the 15.5% capital dispute?
The incredible imbroglio surrounding the governance of French luxury brand group SMCP is drawing closer to a conclusion. On Friday, the group announced in a press release "that it has been informed that the Singapore High Court has today decided to order Dynamic Treasure Group Ltd (DTG) to return to European Topsoho S.à r.l. (ETS) the 15.5% stake in SMCP that was transferred to it in 2021". This restitution must be carried out within one week of the ruling. The wording may seem complex. But for SMCP's creditors, who have been united under the GLAS trustee since the beginning of this rocky affair pitting them against the family of the group's former Chinese owners, it could mean recovering the missing share of capital that "vanished" four years ago. At the time, European Topsoho, the 53% shareholder owned by Yafu Qiu, former chairman of SMCP's board of directors and head of the Chinese Shandong Ruyi group, had discreetly sold over 15% of the capital in the midst of a financial slump. An investigation revealed that these shares had become the property of a company called Dynamic Treasure Group, a holding company run by Chenran Qiu, daughter of Yafu Qiu. Since then, legal proceedings have multiplied. After a British High Court ruling on the case a year ago, followed by a victory for GLAS on appeal, the proceedings were transferred to Singapore, where the shares are held. This time, the Singapore decision is once again in favor of GLAS. However, DTG still has the option of appealing and thus postponing the return of these shares. Why are these legal issues important for a minority shareholding? Because GLAS brings together European Topsoho's creditors, who have been saying since the beginning of this affair that they don't want to be shareholders in a brand. They intend to sell their stake in the parent company of Sandro, Maje, Claudie Pierlot and Fursac, which generates annual sales of over €1 billion. The return of their 15.5% stake would enable them to move forward with a project to sell their 53% stake, while the group's market capitalization stands at 356 million euros, with a share price of 4.55 euros a few minutes before the close of trading on the Paris Bourse on July 4. While at its peak, the share price had flirted with 25 euros per share in 2019, it was recently closer to 2 euros and has rallied in recent months, up 23% since the start of the year. The end of the legal battle would therefore probably mean the start of a project to sell off the 53% stake. Financial backers, employees and partners of the French group are therefore keeping a close eye on the wording of DTG's potential appeal to Singapore. This article is an automatic translation. Click here to read the original article.
Fashion Network
05-07-2025
- Business
- Fashion Network
SMCP: Towards a resolution of the 15.5% capital dispute?
The incredible imbroglio surrounding the governance of French luxury brand group SMCP is drawing closer to a conclusion. On Friday, the group announced in a press release "that it has been informed that the Singapore High Court has today decided to order Dynamic Treasure Group Ltd (DTG) to return to European Topsoho S.à r.l. (ETS) the 15.5% stake in SMCP that was transferred to it in 2021". This restitution must be carried out within one week of the ruling. The wording may seem complex. But for SMCP's creditors, who have been united under the GLAS trustee since the beginning of this rocky affair pitting them against the family of the group's former Chinese owners, it could mean recovering the missing share of capital that "vanished" four years ago. At the time, European Topsoho, the 53% shareholder owned by Yafu Qiu, former chairman of SMCP's board of directors and head of the Chinese Shandong Ruyi group, had discreetly sold over 15% of the capital in the midst of a financial slump. An investigation revealed that these shares had become the property of a company called Dynamic Treasure Group, a holding company run by Chenran Qiu, daughter of Yafu Qiu. Since then, legal proceedings have multiplied. After a British High Court ruling on the case a year ago, followed by a victory for GLAS on appeal, the proceedings were transferred to Singapore, where the shares are held. This time, the Singapore decision is once again in favor of GLAS. However, DTG still has the option of appealing and thus postponing the return of these shares. Why are these legal issues important for a minority shareholding? Because GLAS brings together European Topsoho's creditors, who have been saying since the beginning of this affair that they don't want to be shareholders in a brand. They intend to sell their stake in the parent company of Sandro, Maje, Claudie Pierlot and Fursac, which generates annual sales of over €1 billion. The return of their 15.5% stake would enable them to move forward with a project to sell their 53% stake, while the group's market capitalization stands at 356 million euros, with a share price of 4.55 euros a few minutes before the close of trading on the Paris Bourse on July 4. While at its peak, the share price had flirted with 25 euros per share in 2019, it was recently closer to 2 euros and has rallied in recent months, up 23% since the start of the year. The end of the legal battle would therefore probably mean the start of a project to sell off the 53% stake. Financial backers, employees and partners of the French group are therefore keeping a close eye on the wording of DTG's potential appeal to Singapore.
