Greek jewelry maker Folli Follie said on Thursday it had appointed a new chief executive officer and operations chief for its Asian business, which has been at the center of an accounting scandal that has led to judicial and stock market investigations.
The company, a luxury brand with a distinct curvy peach logo, has been in the spotlight after a hedge fund raised concerns earlier this year about its 2017 financial statements.
In May, Quintessential Capital Management said in a report the company had overstated the number of its outlets and questioned its accounting practices in Asia where the company had expanded rapidly. The report sent Folli Follie shares down sharply.
A preliminary audit ordered by the company revealed wide discrepancies in the 2017 financial statements of its Asian business, prompting chairman Dimitrios Koutsolioutsos and vice chairperson Ekaterini Koutsolioutsou – the couple who jointly founded the firm in 1982 – to step down.