The Hellenic Investors’ Association on Monday warned that it will file lawsuits on behalf of shareholders and bondholders of the Folli Follie Group (FFG), a jewelry and accessory maker listed on the Athens Stock Exchange (ASE) that has witnessed some 70 percent of its capitalization evaporate over the past month.
The same association said it was requesting more information over FFG’s results from the Hellenic Capital Market Commission, the market regulator in Greece, as well as the European Securities and Markets Authority (ESMA) and all interested parties, including the company itself, and the hedge fund Quintessential Capital Management (QCM).
QCM pointed to six main points in basing a particularly negative report earlier this month on FF group’s results, namely, what it claims is a significantly smaller number of sales points; major storefronts cited on the company’s website that have actually closed (FF Soho, FF Madison Avenue); a smaller presence on the Internet and social media, especially relative to main competitors in Asia; financial results showing increased cash infusions into Asian subsidiaries; only two Chinese subsidiaries (Fu Li Fu Lei and Binlianyun), with total revenues of 40 million USD and 50 sales points when FF refers to one billion USD in revenues for all of Asia; and finally, replacement of the Baker Tilly consulting and auditing firm with what it calls a relatively unknown company.
