ECONOMY

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.