Restless Greek jewelery maker Folli appoints new chairman, Deputy CEO

FILE PHOTO: A woman walks past a Folli Follie store in the center of Athens, Greece, October 10, 2018.REUTERS / Costas Baltas / File Photo

ATHEN (Reuters) – Greek jewelery maker Folli Follie has voted Nicolaos Kanellopoulos elected chairman on Monday to replace one of its founders, who resigned last month following 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 branches. It also questioned its accounting practices in Asia, where the company expanded rapidly.

The report sent down Folli shares sharply, led to a fine by the Greek Securities Commission and a review and the resignation of its founders, Dimitris Koutsolooutsos and Ekaterini Koutsolioutsou, last month after a preparatory review revealed large deviations in the 2017 accounts.

Kanellopoulos, who served as a non-executive director, will replace Koutsoloutsos, Folli said in a stock market letter. Koutsoloutsos, the largest 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 hold talks on a restructuring plan, retains his post as general manager, according to the filing.

Folli also said that Narkissos Georgiadis would take over as deputy chairman of the board. Georgiadis, an economist, served as an executive at Daimler from 1998 to 2007, he added.

A Greek court ruled this month that the bank accounts of the Koutsoloutsos family and other current and former executives and officers should be frozen until the 2017 accounts are cleared.

Reporting by Angeliki Koutantou; Cut by Mark Heinrich and Adrian Croft

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