Greek jewelry maker Folli Follie appointed Nikolaos Kanellopoulos as its chairman on Monday to replace one of its founders who stepped down last month amid an investigation into the company’s finances.
Hedge fund Quintessential Capital Management said in a report last May that the company had overstated the number of its outlets. It also questioned its accounting practices in Asia where the company had expanded rapidly.
The report sent Folli Follie shares down sharply, led to a fine from the Greek securities commission and an investigation and the resignation of its founders, Dimitris Koutsolioutsos and Ekaterini Koutsolioutsou, last month after a preliminary audit revealed wide discrepancies in 2017 financial statements.
Kanellopoulos, who has served as a non-executive board member, will replace Koutsolioutsos, Folli Follie said in a bourse filing.
Koutsolioutsos, the biggest shareholder with a 35 percent stake in Folli Follie, resigned as chairman last month. His son George Koutsolioutsos, who has distanced himself from his father and vowed to steer talks on a restructuring plan, retains his post as chief executive, according to the filing.
Folli Follie also said Narkissos Georgiadis would take over as deputy chief executive officer. Georgiadis, an economist, served as an executive with Daimler from 1998 to 2007, it added.
A Greek court ruled this month that the bank accounts of the Koutsolioutsos family and other incumbent and former board members and executives should be frozen pending an inquiry into its 2017 financial statements.