SMCP is emerging from a turbulent zone to enter a period of uncertainty. The French group which owns the fashion brands Sandro, Maje, Claudie Pierlot and Fursac announced on Monday January 17 the appointment of Christophe Cuvillier, former chairman of the management board of the property company Unibail-Rodamco-Westfield, as chairman of its board. administration. Mr. Cuvillier replaces the Chinese Yafu Qiu, removed by the shareholders of SMCP gathered in general assembly, Friday January 14, on decision of the commercial court of Paris.
His appointment puts an end to the major governance crisis that opened in September 2021 during the default of Shandong Ruyi, a group founded by Mr. Qiu, and 53% shareholder of SMCP. This Chinese group, one of the largest textile manufacturers in the country, had in 2018 issued 250 million euros of bonds convertible into shares with several funds, BlackRock, Carlyle, Anchorage, Boussard and Gavaudan.
This loan was guaranteed on 37% of the capital of the French group and was to be repaid in September 2021. But at maturity, Shandong Ruyi, very heavily indebted following a bulimia of acquisitions, was unable to do it. Following this payment default, the funds took control of 29% of the capital of SMCP.
Three new independent directors
This consortium was then confronted with a dramatic turn of events. A month after its failure, Shandong Ruyi, which still held 24% of SMCP’s capital, sold 16% of non-secured securities to a third party, without reporting to the financial market authority. According to GLAS, the structure which represents the four creditor funds, this block would have been sold to Dynamic Treasure. Its sole shareholder is none other than Chenran Qiu, daughter of Mr. Qiu, who sat on the board of directors of SMCP. And the amount of the operation would be far from the “90 million euros” that, according to financial analysts at Oddo BHF, this block of shares was then worth. M’s companyme Qiu would have got his hands on this 16% for one euro.
Since then, GLAS has gone to court in Paris, London and Luxembourg to obtain the cancellation of this transaction and the convening of a shareholders’ meeting. His goal: to revoke the four representatives of Yafu Qiu on the board of directors. This first objective was achieved, with the appointment of three new independent directors.
However, the SMCP group is not done with the Shandong Ruyi era, which still holds 8% of the capital. And the funds BlackRock, Carlyle, Anchorage, Boussard and Gavaudan find themselves at the head of a block representing 25% of the voting rights, whose value is around 160 million euros only.
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