Troubled Greek jewellery maker Folli appoints new chairman, deputy CEO

Folli Follie SA

29/10/2018 21:20

ATHENS, Oct 29 (Reuters) - Greek jewellery maker Folli
Follie appointed Nicolaos Kanellopoulos as its chairman on
Monday to replace one of its founders who stepped down last
month amid an investigation into the company's finances.
    Hedge fund Quintessential Capital Management said in a
report last May that the company had overstated the number of
its outlets. It also questioned its accounting practices in Asia
where the company had expanded rapidly.  urn:newsml:reuters.com:*:nL8N1TS151
 urn:newsml:reuters.com:*:nL5N1UJ2ZP
    The report sent Folli shares down sharply, led to a fine
from the Greek securities commission and an investigation and
the resignation of its founders, Dimitris Koutsolioutsos and
Ekaterini Koutsolioutsou, last month after a preliminary audit
revealed wide discrepancies in 2017 financial statements.
 urn:newsml:reuters.com:*:nL8N1WP28W  urn:newsml:reuters.com:*:nL8N1WG0EZ  urn:newsml:reuters.com:*:nL8N1WC4LZ
    Kanellopoulos, who has served as a non-executive board
member, will replace Koutsolioutsos, Folli said in a bourse
filing. Koutsolioutsos, the biggest shareholder with a 35
percent stake in Folli, resigned as chairman last month.
    His son George Koutsolioutsos, who has distanced himself
from his father and vowed to steer talks on a restructuring
plan, retains his post as chief executive, according to the
filing.  urn:newsml:reuters.com:*:nL8N1WG0EZ 
    Folli also said Narkissos Georgiadis would take over as
deputy chief executive officer. Georgiadis, an economist, served
as an executive with Daimler from 1998 to 2007, it added.
    A Greek court ruled this month that the bank accounts of the
Koutsolioutsos family and other incumbent and former board
members and executives should be frozen pending an inquiry into
its 2017 financial statements.  urn:newsml:reuters.com:*:nL8N1WP28W

 (Reporting by Angeliki Koutantou
Editing by Mark Heinrich and Adrian Croft)
 ((angeliki.koutantou@thomsonreuters.com; +30 210 3376436;
Reuters Messaging: angeliki.koutantou.reuters.com@reuters.net))