KUALA LUMPUR – Although government-linked companies Khazanah Nasional Bhd and Permodalan Nasional Bhd (PNB) claimed that their investments in FashionValet Sdn Bhd were to support homegrown start-ups, company documents appear to paint a different picture.
According to Companies Commission (SSM) filings, in December 2018, FashionValet purchased 30 Maple Sdn Bhd – a company which appears to be owned wholly by social media personality Datin Vivy Yusof and her husband Datuk Fadzarudin Shah Anuar – for a whopping RM95 million.
This purchase was made the same year Khazanah and PNB invested RM47 million into FashionValet, a company also founded by Vivy and Fadzaruddin.
FashionValet’s 2018 annual report valued 30 Maple’s brand at RM68.8 million and goodwill at RM21 million.
It is understood that 30 Maple operates Vivy’s well-known headscarf brand Duck.
“On December 4, 2018, the group (FashionValet) acquired the entire equity interest in 30 Maple for a total consideration of RM95 million by the issuance of 851,686 new ordinary shares of the company,” the 2018 annual report said.
30 Maple, however, did appear to be a profitable company in 2017 and 2018 recording a profit of RM8.5 million and RM7.745 million respectively.
According to 30 Maple’s company documents, the company paid a RM4.2 million dividend in 2017 and RM10 million in 2018.
Meanwhile, the company documents sighted by Scoop so far made no mention of the Covid-19 pandemic affecting cashflow during FashionValet’s attempts to grow the company’s platform.
However, mention was made of the rising costs of operating Duck due to the pandemic.
“The operating division continues to face challenges due to the competitiveness encountered in respect of the retailing of fashion apparel and accessories of this in-house brand – Duck.
“The relative costs to be incurred in the manufacturing of the products and in the delivery of goods for online sales continue to rise subsequent to the onset of the Covid-19 pandemic.
“This has resulted in the selection of raw materials, suppliers and third-party delivery service providers to become challenging in view of cost containment whilst managing the quality of the products,” the 2022 annual report states.
Recently, it was revealed in parliament that Khazanah and PNB divested their interest in FashionValet for a mere RM3.1 million which they initially purchased in 2018 with a RM47 million injection.
The revelation, which drew public backlash, prompted Vivy and Fadzaruddin last Friday to issue an apology and claim responsibility for FashionValet’s failings.
Khazanah also released a press statement the same day and mentioned that the Covid-19 pandemic forced FashionValet to shift its focus from operating as an e-commerce platform for Asean products to promoting its in-house brand Duck and Lilit instead.
On Saturday, the Malaysian Anti-Corruption Commission (MACC) said it had begun a probe into Khazanah and PNB’s failed investments in FashionValet.
MACC chief commissioner Tan Sri Azam Baki has said the probe is necessary as the issue involves taxpayers’ monies. – November 5, 2024