Controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2019
Creditor and audit disputes
The company faced creditor enforcement, unsuccessful efforts to obtain court protection and difficulties producing audited accounts. Reference material also cites PwC reservations and previously undisclosed loans exceeding €100 million to an affiliated Asian company.
2018
Allegations of financial misrepresentation and market manipulation
Quintessential Capital Management alleged that Folli Follie’s reported Asian revenues, profits, cash balances and retail network were materially overstated, especially in relation to Chinese subsidiaries. The allegations caused a severe market reaction, suspension of share trading and wider scrutiny of the group’s governance and accounts.
2018
Bond credit event and leadership departures
A credit event involving a Folli Follie bond intensified the crisis. In September, co-founder and chairman Dimitris Koutsolioutsos and his wife left the business, while investors and employees pressed for further action.