By S. Emmanuil & I. Zafolia
A long-awaited forensic evaluation by Alvarez & Marsal (A&M) of beleaguered Folli Follie Group (FF Group) shows the latter’s value at one-tenth of what was previously reported by the group, based on turnover.
A full picture of the group’s financial results will come with the completion of other ongoing probes, both legal and accounting, as well as a re-evolution of its 2017 results, and possibly of previous years.
According to the report, entitled “Preliminary Restatement Findings with respect to the FF ASIA GROUP consolidated financial statements for fiscal year 2017”, the company generated revenue from Asian subsidiaries at one-tenth of what was listed in its 2017 results, i.e. 116,847 million USD, significantly down from 1.112 billion USD that it reported.
Re-assessed findings showed losses of 44.702 million USD, instead of profits of 316.44 million USD reported last year. Reserves were listed at just 6.4 million USD, a small fraction of the 296.771 million USD reported in 2017 results.
