The Alvarez and Marsal report on the financial and legal audit of Folli Follie that was issued on Tuesday shows major discrepancies in the company’s finances.
The report “Preliminary Restatement Findings with respect to the FF ASIA GROUP consolidated financial statements for fiscal year 2017” was delivered to the Folli Follie board of directors and the results led to the resignation of chairman Dimitris Koutsolioutsos and vice president Aikaterini Koutsolioutsou.
Specifically, the cash and bank balances for 2017 presented by the company were $297 million when in fact they were only $6.4 million, revenue was given to be $1.1 billion when in fact it was only $116 million, profits were presented as being $316.44 million when in fact Alvarez and Marsal found only $44.7 million.
According to Alvarez & Marsal’s findings, no money was misappropriated and there was no other misuse of the company’s assets.
The company claims that it is in preliminary discussions with potential new funding institutions for the coming period. The company is also in preliminary discussions with its lenders to explore other means of improving liquidity and to discuss the possible terms of a functional and financial restructuring that will ensure the long-term viability of the Group.