Folli Follie losses down, debt still high

Folli Follie losses down, debt still high

Jewelry and fashion accessories company Folli Follie sustained losses of 121 million euros during 2019, or 44% less than in 2018, according to results as yet uncertified by chartered accountants.

Operational losses also declined, to about €74 million in 2019 from €156.2 million in 2018, despite turnover shrinking to €203 million from €297 million.

Accumulated losses at the end of 2019 were €666 million, while negative equity rose to €296 million from €175.4 million.

The group’s total indebtedness is €708 million, of which €479 million is in short-term loans. At least it managed to contain administrative and distribution costs, with the first dropping 27% to €51.7 million and the second cut 40% to 89.5 million.

Given that the results are still unaudited, investor interest is focused on the chartered accountants’ audit report and comments.

Folli Follie’s management must now submit the company’s bankruptcy deal to a court. They will soon launch a consent solicitation to bearers of corporate bonds. Bearers, in turn, will be given 21 days to approve the company’s plan in a general assembly before it is submitted to a court.

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