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![video link button](/Content/en/images/attachement-icon.jpg)
Logo of Fawaz Abdulaziz Alhokair Co. (Cenomi Retail)
Fawaz Abdulaziz Alhokair Co.’s (Cenomi Retail) board of directors scrapped a previous recommendation to reduce the company’s capital.
In a statement to Tadawul, Cenomi Retail said it will proceed with implementing a cost control and performance improvement program. It will also continue selling non-core brands, and evaluate the financial impact expected from the potential significant developments of the transaction.
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The board’s previous recommendation on accumulated losses was changed, given the potential transaction of merger of several commercial agencies on Aug. 19 and the developments related to the company’s financial position.
In March, Cenomi Retail’s board proposed reducing the company’s capital by 91.28% to SAR 100 million from SAR 1.14 billion, Argaam earlier reported.
It also approved the sale of 24 non-core brands, including the Aleph brand and brands for the food group, based on the company’s strategic focus on core and important brands.
The company also started negotiations with a top fashion retailer for a significant transaction that could involve the merger of several commercial agencies.
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