Folli Follie, a well-known jewellery maker based in Greece, is currently facing a significant amount of debt totaling around 430 million euros over the next two years. In an effort to address this financial burden and ensure the company’s long-term sustainability, Folli Follie has proposed a revised restructuring plan to its creditors.
With a diverse portfolio that includes its high-end jewellery brand and the distribution of popular international apparel brands such as Nike and Calvin Klein in Greece, Folli Follie holds a strong position in the market. The company employs a sizable workforce of 5,000 individuals across multiple countries, including China and Japan.
The company’s recent financial troubles stemmed from allegations of misrepresented sales data in a hedge fund report released last year. This controversy led to a sharp decline in Folli Follie’s stock prices, legal investigations, penalties levied by the Greek securities regulator, and the departure of its founders.
To address these challenges and restructure its operations, Folli Follie has been in talks with its creditors. While a previous agreement with unsecured creditors fell through, the company collaborated with its advisors to develop a new restructuring proposal.
Before moving forward with its rehabilitation plan in the Greek legal system, Folli Follie must secure approval from a majority of its creditors. The company aims to obtain court approval for the plan by June 2020.
The revised restructuring plan reflects Folli Follie’s dedication to overcoming its financial difficulties and ensuring its future success. By actively seeking creditor approval, the company is proactively working to realign its debt obligations and operational framework in order to emerge stronger and more resilient in the market.
For more information on Folli Follie’s restructuring efforts, please visit their official website here. To learn more about financial restructuring and debt management strategies, click here.
