Alvarez & Marsal report finds 290 mln euro hole in Folli Follie’s 2017 figures


The inspection by Alvarez & Marsal on the activity of troubled luxury jewelry maker and retailer Folli Follie in Asia last year has revealed huge discrepancies, Kathimerini understands, which led late on Tuesday to the resignation of company founders and leading executives Dimitris Koutsolioutsos and Ekaterini Koutsolioutsou.

In the report prepared by Alvarez & Marsal that is expected to be submitted on Wednesday to the Capital Market Commission, Folli Follie appears to have massively overstated its activity and finances in China in 2017, posting a cash deficit of 290 million euros.

The difference in the real and the declared financial figures of the Athens-listed company appears chaotic, as Alvarez & Marsal has found that the actual turnover of the company in China amounted to just $116 million, against a declared $1.1 billion, and its cash reserves actually came to $10 million euros against a declared $220 million.

The Alvarez & Marsal report covers only one financial year and the stock market watchdog is likely to expand probing to all of the troubled group’s activities over the last few years.

The presentation of the report at the company’s board followed the resignation by the appointed consultant Rothschild, as well as the London-based legal advisor Allen & Overy and Greece’s Bernitsas law firm that had been commissioned to support the international firm in the Folli Follie restructuring project.