Big hole found in Folli Follie’s 2017 finances

Big hole found in Folli Follie’s 2017 finances

Inspections into the finances of troubled luxury jewelry maker and retailer Folli Follie by Alvarez & Marsal and Ernst & Young point to a hole of 280 million euros in the company’s 2017 figures, sources have told Kathimerini.

This deficit concerns the Folli Follie group’s cash and cash equivalents that in the controversial financial report of 2017 were recorded at 466 million euros.

In the context of the probe by the Capital Market Commission that led to the imposition of a 4 million-euro fine on the group, Folli Follie failed to present documents confirming about 242.5 million euros of total available cash in the group results.

This information comes just as the word in the market is that “it will be hard for any investor or creditor to accept a solution for the future of Folli Follie that will include in its management anyone with the Koutsolioutsos surname.” Credit market officials, who are aware of the plans Folli Follie is making, agree on that.

That is because the Koutsolioutsos family’s shareholding percentage in the new company to be formed after the bankruptcy law’s corporate streamlining process, as well as the family’s role in the group’s future will be two of the main problems in the negotiations with any possible investors and the creditors, legal sources confirm. What is also crucial is the extent of the haircut that the creditors will accept.

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