Khazanah and PNB had lost RM43.9 million after selling their stake in the e-commerce platform for just RM3.1 million, having initially invested RM27 million and RM20 million, respectively.
In an Instagram post, the couple apologised to Khazanah and PNB for the controversy the company had dragged them into, insisting that they took full responsibility for the failure of their investment.
“We think it is time for us to step away from the business and relinquish our positions. We do not want the ensuing issues to further affect the company, considering that it is in the stages of a turnaround,” they said.
Fadzarudin is Fashion Valet’s executive director while Vivy is the company’s CEO.
The couple said they had tried to expand the company too aggressively, growing its team and number of retail outlets while expecting continuous growth, leaving them unprepared when the Covid-19 pandemic broke out.
Cost-cutting measures were carried out but their situation became dire.
“There are so many things we wish we had done differently, so many other factors we wished we had considered before embarking on our expansion plans.
“Personally, we also continued to curate a positive and hopeful face to the world, naively thinking that maintaining such a posture would instil confidence in our brand and products.
“As the two people responsible for managing the company, the buck stops with us and the fact is that we failed our investors. We are disappointed in ourselves and regret that it has come to this. We are truly sorry,” they said.
Earlier this week, the finance ministry said Khazanah invested in Fashion Valet in 2018 as part of its mandate at the time to foster local technology entrepreneurs and gain exposure in the rapidly growing e-commerce sector.
At the same time, PNB wanted to support fast-growing Bumiputera digital retail companies and help them become regional retail platforms for Malaysian brands.
Yesterday, unity government spokesman Fahmi Fadzil urged Khazanah and PNB to explain their losses since it involved public funds, but he also asked the public to give them time to issue an official response.