Article By: The2Bros
The various agencies and legal authorities are up in arms wanting to investigate all the Dumb people associated with the FashionValet fiasco. MACC has summoned the Social Media famous couple who have a penchant for their lives to be a public spectacle. Like the Kardashian they pretend to live a life that’s fictional at best. This couple continue to spend their working hours explaining to the MACC how they managed FashionValet from 2018-2023. If they are sitting at Putrajaya who is running the outlets day to day? At this juncture let me post a question which you all budding business graduates can answer at the end of this article. Is the remnants of the business known as FashionValet able to survive the calendar year 2024 as an ongoing concern?
Khazanah & PNB have large funds in their kitty and for whatever reason (ideally best explained by them to MACC) they invested in FashionValet for a total valuation of RM200M. MACC should review their investment papers and examine its correctness. This investment was undertaken in 2018 and for avoidance of doubt its pertinent to take note that FashionValet only owned a platform known as Fashionvalet e commerce platform. Therefore for avoidance of doubt the RM200M valuation was only for the e commerce platform. Interestingly at this material time the Social media famous couple owned another entity known as duck. Why the Dumb ones only purchased the ecommerce platform at this juncture is your second quiz question to answer graduates.
Now Dumb (Khazanah & PNB) later in 2018 made a deal for the Social media famous couple to sell duck to FashionValet in exchange for shares in FashionValet. Now the Dumb having already valued an e commerce platform at 200M valued duck at a tidy sum of RM95M. The valuation for duck was supposedly supported by the fact that duck was making a profit of RM7.7M in 2018. Therefore graduates Dumb have valued FashionValet and duck at a total value of RM295M in 2018. I wonder how many headscarf one can purchase for that amount? In a moment of brilliance (actually madness) Dumb decided not to participate in the Management of FashionValet. Dumb didn’t join the Board of Directors but left the management in the hands of Dumber (social media famous couple). Dumber managed FashionValet to a point where in 2022 FashionValet closed the e commerce platform to concentrate only on duck. As such at this point there is a wipeout of the value of RM200M in valuation. Now graduates the important question is why would Dumb pay for the e commerce platform and shut it down? How was this decision taken? Did the Board members advise this? Further was this announcement made public? Was duck profitable in 2022? Otherwise why not wind up FashionValet?
Moving forward to 2023, FashionValet comprising only duck was saddled with losses and needed a bailout. Dumb refused to put in anymore money into the project. Dumber had no money to invest in the project to keep duck sustainable. Walks in the dumbest of them all NXBT. It must be emphasized that duck was now a loss making entity. In 2023 it was losing RM11M. The valuation of duck has dropped from RM95M to a sum of RM15M 9which in my opinion is too high). In all probability duck was on a path leading to an organ grinder but dumbest put in money to rescue duck which was already insolvent trading. Afzal Rahim must have been infatuated with the founder to actually invest in FashionValet. Dumbest (NXBT) is now saddled with a business that is in debt, without any goodwill and the subject of a freezing order by MACC. So NXBT has just poured money into a business that cannot operate its accounts. Graduates the last question is do you agree that this is the most oxymoron investment ever?
In conclusion, when one evaluates the evidence Dumbest is merely an emotionally infatuated oxymoron. Dumber are narcistic privileged duo with no real business acumen whislt the Dumb should be compelled to attend refresher courses on investment.
One seriously wonders if there is really a crime or just Dumb, Dummer and Dummest outdoing each other to win an award for stupidity. Graduates what is your conclusion?
Comment please.
