June 26, 2018 / 7:27 AM / in 2 months

Folli says financial audits to be concluded in August

ATHENS (Reuters) - Luxury jewellery maker Folli Follie (HDFr.AT), whose shares have been suspended from trading and finances are being investigated by Greek authorities, said late on Monday a financial audit would be concluded in August.

Folli, which has hired Ernst & Young to audit specific items of its 2017 financial statements, said that Alvarez & Marsal (A&M) would also conduct a forensic evaluation of the most recent financial statements of its Asian subsidiaries.

Both firms are expected to complete their audits in August and Folli will then mandate Ernst & Young to undertake a full review of its 2017 financial statements, it said.

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 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.

Under Greek law, the securities regulator may ask a Greek court to order an additional audit of the company’s full financial statements when there are allegations of wrongdoing.

“The company does not consider it appropriate to make any further statement regarding its Asian business until the advisers finish their audits,” it said.

Reporting by Angeliki Koutantou; Editing by Mark Potter

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