Greece’s Folli Follie overstated its 2017 revenue by more than 1 billion euros, an audit by PwC showed on Tuesday, as the jeweller reported a rescue plan proposed by bondholders had collapsed.
Folli instead presented an alternative restructuring proposal for creditors and said it expected court ratification of it by June 2020.
“The board of FF Group is confident that the group has a future if the restructuring proposal is approved and is of the view that the restructuring proposal represents a viable alternative and likely the only viable alternative to the company filing for bankruptcy,” it said.
Folli has been in turmoil since a hedge fund report in May last year questioned its accounting.
The shares have been suspended since, Folli has been fined by Greece’s securities watchdog and founder Dimitris Koutsolioutsos has resigned. Koutsolioutsos owns a 35 percent stake in Folli, while China’s Fosun holds 16 percent, Refinitiv Eikon data shows.
Alongside its new rescue proposal, Folli reported the results of an audit by PwC of its 2017 earnings which showed turnover of 359.2 million euros versus a reported 1.4 billion euros.
It showed a net loss of 136.2 million euros versus a net profit of 216.8 million euros originally reported.
“The consolidated financial statements of 2017 set the basis for the company’s future steps” as it continues its worldwide commercial activities and enhances its corporate governance, it said.
It said despite the restated figures the group’s net asset value remained positive.
Folli has debt of about 430 million euros ($483 million) due this year and in 2021.
The company distributes international apparel brands in Greece, including Nike and Calvin Klein, along with its luxury jewellery.
It employs 5,000 people at home and abroad, including in China and Japan.