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Fashion Technology Startup Zilingo Suspends CEO

Fashion Technology Startup Zilingo Suspends CEO
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Fashion Technology Startup Zilingo Suspends CEO

Fashion Technology Startup Zilingo Suspends CEO

The board of Singapore-based fashion technology startup Zilingo said on Wednesday it had suspended its CEO and co-founder, Ankiti Bose, in a move that sources said was related to an investigation into the company's accounts.

A lawyer for Bose said that she declined to comment on her suspension or the investigation.

The company, which is backed by investors including Temasek Holdings and Sequoia Capital India, said in a statement that its shareholders and board members had received information last month that required investigation.

After this, the major investors authorized Zilingo's board to suspend Bose, pending an investigation of the "matters" raised, the company's statement said, Reuters reported.

"The major investors hired an independent firm to investigate the matter, and the company is working closely with the major investors and the independent firm for the investigation," Zilingo said, but declined to give specifics.

Sources familiar with the matter said Temasek and Sequoia had raised concerns about Zilingo's accounts to the company's board last month. The sources declined to be named due to the sensitivity of the matter.

Temasek declined to comment, while Sequoia referred to Zilingo's statement.

Zilingo was founded in 2015 by Bose and chief technology officer Dhruv Kapoor as a Southeast Asia focused e-commerce firm. The group has become a global supply chain enabler for the apparel industry, providing logistics, financing and other services to thousands of factories and merchants.

Bose co-founded Zilingo in her early twenties and scaled it up rapidly, styling herself as a role model for young entrepreneurs seeking to build a global business.

Zilingo, which says it has about 600 employees in eight countries, raised $226 million in early 2019 in its last fundraising round, which valued the company at about $1 billion.

It has said its sales volume is more than $1 billion annually.

According to publicly available records on Singapore's accounting regulator's website, Zilingo has not filed annual returns for 2020 and 2021 so far.

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Fashion

Kering Posts 11% Drop in Q2 Sales, Sees Weak Second Half

The logo of luxury brand Gucci is seen in Tokyo on June 22, 2021. (AFP)
The logo of luxury brand Gucci is seen in Tokyo on June 22, 2021. (AFP)
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Kering Posts 11% Drop in Q2 Sales, Sees Weak Second Half

The logo of luxury brand Gucci is seen in Tokyo on June 22, 2021. (AFP)
The logo of luxury brand Gucci is seen in Tokyo on June 22, 2021. (AFP)

Kering reported a bigger-than-expected drop in second-quarter sales and forecast a weak second half, as the French luxury group struggles to revive its key label Gucci and worries grow about a prolonged downturn in high-end spending.

Sales at the French luxury group which owns labels Gucci, Boucheron and Balenciaga, fell to 4.5 billion euros ($4.9 billion), an 11% drop on an organic basis, which strips out currency effects and acquisitions.

The figure was below analyst expectations for a 9% drop, according to a Visible Alpha consensus.

It also said second-half operating income could fall by around 30%, following a 42% drop in the first half.

Sales at Gucci fell 19%, showing no improvement from the first quarter, and below analyst expectations for a 16% decline, according to a Visible Alpha consensus.

Kering has been revamping Gucci, the century-old Italian fashion house which accounts for half of group sales and two-thirds of profit.

Minimalist designs from new creative director Sabato de Sarno, which began trickling into stores earlier this year, are key to the design reset and push upmarket, in a bid to cater to wealthier clients who are more immune to economic headwinds.

Kering chief financial officer Armelle Poulou told reporters that the designs had been well received and the rollout was on track.

But the efforts have been complicated by a downturn in the global luxury market, while China's rebound - traditionally Gucci's most coveted market - was clouded by a property crisis and high youth unemployment as Western markets came down from a post-pandemic splurge.

Earnings from sector bellwether LVMH on Tuesday missed expectations as sales rose 1%, offering few signs that a pickup is around the corner, sending shares in luxury goods companies down on Wednesday. Kering traded at its lowest level since 2017.