By S. Emmanuil
Consultants for embattled Folli Follie Group are reportedly stepping up contacts with would-be investors in order to guarantee both short-term financing – to cover current operational costs and restructuring – as well as long-term credit to ensure sustainable growth after 2020.
The contacts come amid a Monday hearing at an Athens first instance court that is expected rule on FF’s petition for protection from its creditors.
If the proposed business-cum-rescue plan finds suitors, FF Group will arrange for a payment plan towards suppliers, with arrears as of Nov. 1, 2018 reaching 10 million euros, as well as to cover arrears to the Greek state, roughly 12 million euros.
Another 31 million euros, under the draft plan, would be used to pay off domestic creditors, i.e. Greek banks, with the auctioning off of FF shares in the Attica department store as the primary source of revenue.
Finally, the biggest chunk of the proposed bailout/restructuring plan involves payment or partial payment to bond holders, with a figure of 432 million euros previously cited.
The FF Group also owns subsidiaries that are not related to its primary business activity, namely, retailing and accessory manufacturing, such as the cruise ship maintenance company Planaco and ad tech firm Qivos, both of which could go on the sale block to provide much needed liquidity.
Under the restructuring plan, reports hold, FF will close loss-making stores and exit markets where it has not posted positive performances, such as Europe and North America.
FF will remain in Greece and Cyprus, but both markets will be serviced by an Asia-based distribution network.
One proposal is for FF to remain in Australia, but to definitely exit Singapore, Guam, Hawaii and Korea.
Finally, a restructured FF Group would focus on the massive Chinese market, which is considered as a completely separate corporate endeavor.
