Folli Follie attacked by shareholding fund

The Cyprus Securities and Exchange Commission will ask the listed company for anadditional independent audit by an international audit firm but also a detailed explanation from the fund that has "attacked" Folli Follie.

The American hedge fund QCM has questioned the financial and commercial position of the Folli Follie Group, with the stock closing at limit down. Folli Follie's management then issued a fierce statement blaming the fund for speculative games against the firm and stressed that it would appeal to Justice. The truth is that, as the fund admits, it has shorted the share, that is, in simple terms, it has hedged on the fall in stock price.

QCM, on the other hand, carried out on-the-spot checks, visited points that were officially stated as shops by the Greek company but did not locate them. At the same time, it raises doubts about the correctness of the company's financial statements and asks why no independent auditors have been assigned.