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Athens Exchange Suspends Folli Follie Over Report Discrepancies

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Athens Stock Exchange. (Photo by Eurokinissi/Giannis Panagopoulos)

ATHENS - One of Greece’s most noted companies, jewelry and accessory manufacturer Folli Follie - with operations in 25 countries - was suspended by the Athens Stock Exchange (ASE) as its shares have collapsed following a report by a New York City hedge fund questioning the company’s financial reports.

The suspension was sought by the Capital Markets Commission ahead of an audit, and earlier by the company itself although Folli Follie also said it was because of a “coordinated dissemination of misleading news" regarding the company, with very negative impressions created, the business newspaper Naftemporiki said.

The company’s shares closed at 4.8 euros ($5.60) on May 24 following losses of 30 percent over the previous seven sessions. Over the last month its capitalization has shrunk by 70 percent.

The company was established in 1986 in Greece by Dimitris Koutsolioutsos in the commercial district of Athens. Folli Follie started by manufacturing jewellery and in 1994 launched their watch line. In 1995 the first overseas store opened, in Japan. It is now ranked amongst the top 10 brands in luxury goods in Japan with 80 stores.

The company's design team consists of Italian, Swiss and Greek top designers who work together to present two collections per year to offer a "full fashion concept" of branded, modern jewellery, watches and accessories at affordable prices. The company also offers a men's watch collection under the brand name Folli Follie.