Cenomi Retail officials charged with stock manipulation

The Capital Market Authority is taking 17 people to criminal court over alleged manipulation of Cenomi Retail's share price. The regulator referred the suspects — a mix of current and former board members, an unnamed CEO, several finance managers, and members of the audit team at the company's former external auditor — to the Public Prosecution, which has now filed a penal case before the Committee for Resolution of Securities Disputes (CRSD), a CMA statement said yesterday.

The charge? Creating a “false and misleading impression” about the value of Cenomi Retail’s shares. The report also flagged suspected misuse of company funds and management powers against the company’s own interests, allegedly to benefit individuals personally or companies in which they held a stake. Some board members and the acting CEO are also being pursued for suspected breaches of the Companies Law, on top of Capital Market Law violations.

The CMA isn't naming names yet. The General Secretariat of the CRSD said it will publish the identities of those found in violation once the committee issues final rulings. Investors who can prove they were harmed will be able to file compensation claims through the CRSD, provided they first lodge a complaint with the CMA.

Cenomi Retail had no public comment on the referral as of this writing. The stock closed yesterday’s session down 2.3% at SAR 12.52, taking its year-to-date losses to roughly 34.6%.

Two years in survival mode: Cenomi Retail, formerly Fawaz Abdulaziz Alhokair & Co., runs more than 800 stores across eight countries and holds franchise rights for brands including Zara under a long-running agreement with Inditex. But the business has been in deep restructuring since 2024, when accumulated losses crossed SAR 1.55 bn in the first quarter alone — equivalent to more than 135% of capital at the time. The board responded with a plan to offload non-core brands in waves, shutter hundreds of stores, and try to deleverage the balance sheet through divestment proceeds.

The Al-Futtaim rescue. The Alhokair founding family agreed in July 2025 to sell their 49.95% stake to UAE conglomerate Al Futtaim Retail for roughly SAR 2.52 bn (around USD 666 mn), at SAR 44 per share. The agreement came with a SAR 1.35 bn shareholder loan from Al-Futtaim to shore up working capital. In September, Cenomi Retail signed a further SAR 1.6 bn credit facility with Emirates NBD Saudi Arabia, backed by an Al Futtaim corporate guarantee. Al-Futtaim is now the company's largest shareholder and a related party in its financings.

The numbers haven't fully turned. Net losses widened to SAR 505.5 mn in2025, with accumulated losses crossing SAR 2.1 bn. The first quarter of this year saw the company swing to a net loss of SAR 47.3 mn from a SAR 1.8 mn net income a year earlier. CEO Salim Fakhouri pointed to softer Ramadan trading and regional geopolitical pressures. The company is in the process of rebranding to AFG International, with the shareholder vote on the name change held earlier this year.