Executive Summary
The image we received from reviewing Folli Follie’s (FLLIY) financial statements and official declarations over the year is that of a rapidly-growing multinational fashion company led by double-digit growth in its key segment: Asia. Unfortunately, following an extensive investigative and due diligence work we find it impossible to reconcile that picture with our findings on the ground, which point to an unprofitable, struggling company with materially smaller, and rapidly decreasing revenue, network size and cash balances. The core of the issue seems to be concentrated in FF’s Asian and, particularly, Chinese subsidiaries. Our