Greek jewelry manufacturer Folli Follie is embarking on a new chapter with the unveiling of a comprehensive restructuring plan. This strategic move comes in the wake of CEO George Koutsolioutsos’ resignation and aims to revamp the company’s business operations in the face of recent challenges.
The decision to pursue a restructuring plan was prompted by a turbulent period for Folli Follie, marked by a sharp decline in its shares following a damning hedge fund report in May. This setback triggered a legal investigation and led to a fine from the Greek securities watchdog, ultimately resulting in the departure of the company’s founders. In light of an audit uncovering discrepancies in its 2017 financial statements, Folli Follie has wasted no time in addressing these issues head-on.
Central to the restructuring efforts is the division of Folli Follie into two distinct entities, a strategic move aimed at isolating and resolving past accounting irregularities. With a new business plan in place, the company is charting a course towards revitalizing profit growth over the next three years. To kickstart this transformation, Folli Follie is gearing up to raise crucial funds ranging from 25 million euros to 45 million euros from potential investors in early 2022.
To secure the necessary funding for its revitalization, Folli Follie is banking on the approval of 60 percent of its creditors, a critical milestone that the company is hoping to achieve before the end of the month. Meanwhile, the board is on the lookout for a new CEO to steer Folli Follie into a new era of growth and stability. While George Koutsolioutsos has stepped down from his leadership role, he has been asked to remain on board as a non-executive director to guide the transition to fresh leadership.
With a solid restructuring plan in motion and ambitious goals on the horizon, Folli Follie is poised to navigate its way back to financial health and sustainable success in the competitive jewelry industry.
For more information on Folli Follie’s restructuring plan, visit Folli Follie Group official website.
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