(C) Reuters. FILE PHOTO: An employee arranges a clothing display inside a Sandro luxury clothing store, operated by SMCP Group, in Paris, France, December 21, 2017. REUTERS/Benoit Tessier
PARIS (Reuters) – French fashion company SMCP, whose brands include Sandro and Maje, said on Thursday that European TopSoho – a unit of its majority shareholder – had failed to redeem 250 million euros ($293 million) of bonds exchangeable into SMCP shares.
“European TopSoho has until September 30 (inclusive) to remedy this default”, said SMCP in a statement.
“To SMCP’s knowledge, the shares underlying the bonds and pledged in this context represent 37% of the share capital of SMCP,” it added.
SMCP said the situation did not call into question its own funding and operations, and SMCP shares were up 5.6% by 0855 GMT.
Shandong Ruyi holds 53% of the share capital of SMCP, and European TopSoho is one of its units. Neither company immediately responded to emailed requests for comment.
($1 = 0.8530 euros)
Unit of SMCP’s majority shareholder fails to redeem bonds
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