Folli-Follie Has Greek Euro Exit Contingency Plan, CEO Says
Folli-Follie Group (FFGRP), a Greek manufacturer and retailer of handbags and other accessories, has a contingency plan in case the country has to leave the euro area, Chief Executive Officer George Koutsolioutsos said.
“A big company, for its shareholders as well, should have a plan,” Koutsolioutsos said in a telephone interview from his Athens office today. “We don’t expect to have to implement it but we definitely can’t just completely ignore it.” He declined to give further details of the plan.
Concern that Greece may exit the euro increased after elections on May 6 failed to produce a government, leading the country to a second vote on June 17. Recent polls show Syriza, Greece’s biggest anti-bailout party, level with New Democracy.
A Greek euro exit wouldn’t affect Folli-Follie “that much” because a significant part of its operations are outside Greece, Kousolioutsos said. It would be “catastrophic” for the country, especially after the added pressures on Greeks of five years of recession, he said.
Koutsolioutsos said gross sales in the second quarter of the year are rising in line with the 4.6 percent increase in the previous quarter. International sales increased 11 percent in that period, he said. The company has a presence in 28 countries.
Shares of Folli-Follie gained 4.7 percent to 4.4 euros at 1:13 p.m. in Athens trading, on course for a second day of gains.
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