KUALA LUMPUR, November 15 — The Ministry of Finance has attributed the downfall of online fashion retailer FashionValet to the Covid-19 pandemic, intense market competition, and cash flow issues, leading to financial losses for stakeholders Khazanah Nasional Bhd and Permodalan Nasional Bhd (PNB). Finance Minister II Datuk Seri Amir Hamzah Azizan highlighted how the pandemic’s Movement Control Order (MCO) severely impacted FashionValet’s physical retail operations and stifled demand for premium apparel, forcing the closure of several stores.
In addition to the pandemic, Amir noted that competition from local brands using independent e-commerce channels intensified pressures on FashionValet. Despite efforts to refocus on in-house brands dUCk and LILIT, cash flow challenges persisted, with attempts to raise fresh capital failing to gain traction. Amir emphasized that Khazanah and PNB, as minority investors, offered strategic guidance but acknowledged that their returns did not meet expectations, prompting an internal review and investigation to improve governance at government-linked investment companies.
