Folli Follie gets injunction to protect assets, focus on restructuring

Luxury jewellery maker Folli Follie, whose finances are being investigated by Greek authorities, has obtained a temporary court injunction to protect its assets, it said on Monday.

Folli’s shares plunged in May after equity fund Quintessential Capital Management (QCM) issued a report saying the company had overstated the number of retail outlets it operates worldwide and raised concerns over its reported finances.

Folli said the claims in the report were unfounded and misleading but Greece’s securities regulator suspended its shares from trading on May 25 after the firm failed to provide requested financial data. A Greek prosecutor has ordered a preliminary investigation into the company.

Folli said the injunction, granted by an Athens court, was aimed at maintaining the proper operation of the firm and preventing any impairment in the value of the company’s assets and allow it to focus on a comprehensive restructuring plan.

“The predominant point of such a plan is expected to be the complete restructuring of the company’s financial operation to safeguard the interests of its shareholders, creditors, partners and investors and preserve all working positions,” it said in a bourse filing.

Folli has ordered a financial audit which it expects to conclude next month. [Reuters]