French fashion company SMCP, whose brands include Sandro and Maje, said on Thursday that European TopSoho — a unit of its majority shareholder — had failed to redeem €250 million ($293 million) of bonds exchangeable into SMCP shares.
“European TopSoho has until Sept. 30 (inclusive) to remedy this default”, said SMCP in a statement.
“To SMCP’s knowledge, the shares underlying the bonds and pledged in this context represent 37 percent of the share capital of SMCP,” it added.
SMCP said the situation did not call into question its own funding and operations, and SMCP shares were up 5.6 percnet by 0855 GMT.
Shandong Ruyi holds 53 percent of the share capital of SMCP, and European TopSoho is one of its units. Neither company immediately responded to emailed requests for comment.