The possibility of permanently ending textile operations was openly discussed at an extraordinary general meeting of Mouzakis, with management insisting that restructuring efforts should continue and maintaining that there is still scope to preserve this area of the business.
The discussion took on particular significance after the intervention of major shareholder Eleftherios-Ion-Erik Mouzakis-Gagnoum, who noted that the textile business had been loss-making for a long time and said that, under current conditions, seeking alternative solutions did not appear capable of turning the situation around. In this context, he asked shareholders to consider ending the activity rather than continuing to seek alternative ways of operating.
For management, the company’s chairman and chief executive, John-Paul Gagnoum, argued that such a decision would be premature, as restructuring efforts were still under way and there had not been enough time to assess their results. As noted at the EGM, the company is seeking alternative sources of supply and production, making use of the option to outsource work to third parties.
Reshaping the structure
Management said progress so far was satisfactory, while the company was engaged in a broader, multi-year restructuring process aimed at improving efficiency and securing its viability. Particular reference was made to adapting the organisational structure to the current scale of its operations.
As explained, the company had previously operated with the structure of a large industrial business, but has now made the necessary changes so that its organisation is suited to the scale of an SME in textiles. This adjustment is part of steps already taken to create a smaller, more flexible business structure that reflects current production and commercial needs.
Management has also focused on managing customer receivables, seeking to reduce outstanding balances and speed up cash collection from the market. Conditions remain difficult, it said, as many customers are seeking credit and delaying payments. The company is trying to limit the credit it extends, while taking account of both commercial needs and the need to safeguard its liquidity and viability.
Another aspect of the restructuring concerns inventory management and raw materials. As production has fallen significantly, the company is assessing which stocks remain necessary and which can be sold or liquidated. Management acknowledged that these are complex processes requiring time and resources, particularly in the current economic climate. It nevertheless said it believed that completing these steps could allow textiles to remain a viable part of the company.
Review within six months
Responding to the proposal to end textile operations, John-Paul Gagnoum argued that the ongoing efforts should be given more time. The issue could be brought back for discussion within the next six months, it was noted, by which time there should be a clearer picture of the results of outsourcing and the other measures.
Another shareholder also intervened, saying that around 95% of production had already stopped, while the remaining part—which he described as low-impact because it generates no waste and does not involve boilers, steam or chemicals—was highly profitable. He added that it would be difficult to shut down because it was linked to a long-standing partnership in the French market, and that ending it would take months.
During the same intervention, it was emphasised that efforts to use external partners had not yet been tested for long enough to draw firm conclusions about their prospects. The shareholder also said he believed the profitability of the remaining activity would be reflected in the company’s financial results.
The EGM unanimously approved the third item on the agenda, concerning the viability of production and commercial activities in the textile sector, with management not recommending a shutdown at this stage. It was, however, agreed that the issue would be reviewed again within six months.
Offsetting losses
On the financial side, the extraordinary general meeting, which had a quorum of 52.6%, unanimously approved a reduction in share capital to offset accumulated losses. Specifically, it approved a reduction in the nominal value of each share from €0.50 to €0.41, thereby offsetting losses of €3,453,008.58, as reported in the published financial report for the first half of 2026.
The move eliminates, for accounting purposes, the accumulated losses covered by the offset, as part of efforts to improve the company’s capital structure. It was clarified that the reduction in share capital would not involve a return of funds to shareholders, while the total number of shares would remain unchanged. Shareholders’ ownership percentages would therefore be unaffected.
This is an accounting restructuring that does not bring in new capital or directly boost the company’s cash liquidity. The EGM also unanimously approved the second item on the agenda, concerning an update to the Remuneration Policy.