'We failed our investors': FashionValet founders Fadza and Vivy step ...

By Malay Mail

Friday, 01 Nov 2024 7:51 PM MYT

KUALA LUMPUR, Nov 1 — FashionValet founders Datuk Fadza Anuar and Datin Vivy Yusof announced their resignation following public criticism over the company’s significant financial losses.

In an Instagram post today, they took full responsibility for the failed investment, acknowledging mistakes in managing the business.

“We want to state from the onset that we take full responsibility for the failure of the investment,” they wrote in the post.

They revealed that they “attempted to expand the business too aggressively, and did not sufficiently plan for a rainy day.”

The resignation comes amid scrutiny over RM47 million invested in FashionValet by government-linked investment firms Khazanah Nasional and Permodalan Nasional Berhad (PNB).

Communications Minister Fahmi Fadzil urged Malaysians to give Khazanah and PNB time to clarify the losses, according to an earlier report today.

Fadza and Vivy expressed regret for the issues caused to Khazanah and PNB, saying, “We hope this disappointment does not become a deterrence, and they will continue to support other local entrepreneurs.”

They attributed part of the company’s struggles to the Covid-19 pandemic and operational challenges.

“As much as we tried to cut costs to conserve cash, including shutting down our e-commerce platform, the situation had become dire,” they said.

The founders noted they had attempted to maintain a positive image, hoping to preserve confidence in the brand.

“Personally, we also continued to curate a positive and hopeful face to the world, naively thinking that maintaining such a posture would instill confidence in our brand and products,” they said.

They announced that “it is time for us to step away from the business, and relinquish our positions” to avoid further impact on FashionValet.

The Finance Ministry recently addressed the matter, describing the RM16 million net loss on the RM47 million investment as “negligible.”

However, the disclosure has prompted public debate on the viability of the investment.

FashionValet, once viewed as a promising local brand, has faced mounting financial challenges, leading to the founders’ decision to step back.