Greek luxury jewelry, watch, and fashion accessory firm Folli Follie is closing down its operations in Hong Kong. The company announced that it will be shutting down all of its shops in the city-state and letting go of its 60 employees.
Folli Follie's exit from Hong Kong makes it the latest retailer to give up on its prospects in the city due to the continued disruptions to its business. The months-long civil unrest and the economic downturn caused by the coronavirus pandemic had severely affected the company's ability to generate profit in the city, leading to its decision to pull the plug.
As part of its exit, Folli Follie has appointed Deloitte Advisory to lead the liquidation of FF Group, the company that owns and operators Folli Follie's business in the Asia-Pacific region, including its business in China, Australia, and Japan.
Deloitte China vice-chairman, Derek Lai Kar-yna, mentioned in a statement that all of the company's 12 stores in Hong Kong will be shut down starting this week. The stores' 60 employees will, unfortunately, have been laid off as a result. He added that the city's "deteriorating economic climate" was the main reason for the decision. Deloitte had noted that it has seen an increasing number of retailers who have filed for liquidation in the past couple of months.
FF Group had also announced that it will be closing its Links of London shops in Hong Kong starting on Monday. A post on the website of Moko Mall in Mong Kok that all Links of London shops will be closed until further notice. Links of London is a British brand owned by FF Group.
Folli Follie, which was originally established in 1982 by Dimitris Koutsolioutsos in Athens, is a major player in China's luxury jewelry sector. At its peak, the company had over 185 outlets in mainland China and around 20 outlets in Hong Kong. The company operates in over 17 markets in the Middle East and Asia.
Fosun International, owned by billionaire Guo Guangchang, currently owns a 16.4 percent stake in the Greek company, making it its second-largest shareholder. Koutsolioutsos and his family own a 35 stake in the company and are its largest shareholder.
Earlier in the year, the Folli Follie had embarked on a $338 million debt restructuring to prevent it from going bankrupt. With the onset of the global pandemic, the company was no longer able to keep up its financial responsibilities. The civil unrest and the pandemic's effects on the city's retail sector had also resulted in a number of other luxury brands giving up on their prospects. Last year, Prada decided not to renew its leases in Hong Kong, while Louis Vuitton and Swatch Group, had announced plans of reducing their exposure.
