The long-running Folli Follie scandal is once again drawing attention in Greece, with the long-delayed criminal trial set to begin on October 24 at the Athens Court of Appeal for Felonies. The case, centered on allegations of large-scale corporate fraud at the once-celebrated Greek luxury goods group, could spark a new wave of revelations about the financial misconduct that shook the country’s business establishment.
Expectations ahead of the trial are divided. Some observers believe the proceedings could finally shed light on aspects of the scandal that have remained obscured, while others doubt that much new will be revealed. Still, minority shareholders are preparing to make their presence felt in court, seeking not only justice but also compensation through the unfreezing of company assets. They hope the appellate court will eventually authorize the release of frozen properties and accounts, enabling them to recover at least part of their lost investments.
The company’s temporary administration, representing bondholder creditors who helped keep Folli Follie afloat after the scandal erupted, shares this goal. Yet internal unity is beginning to fray. Sources close to the matter say several creditors have grown frustrated with management, citing inconsistent court rulings over whether the company’s assets can be used or sold.
Attention has now turned to FF OpsCo, a subsidiary created two years ago to manage Folli Follie’s remaining business operations in Greece. Disagreements have emerged there too over how to handle the group’s remaining assets. Tensions escalated following the resignation of Daniels Malte, who represented bondholders on the three-member board alongside CEO Giorgos Samios and Themis Kalapotharakos.
Malte’s departure is widely seen as a sign of dissatisfaction with the slow pace of negotiations and the administration’s failure to secure deals ensuring the group’s long-term viability. As a result, Folli Follie’s survival is increasingly precarious. The interim management team is struggling to sustain operations, while potential buyers have tabled offers well below market value—fueling anger among creditors.
Recent bids have come from Bank of America and Greek entrepreneur Sami Fais, founder of the Fais Group.
Bank of America proposed providing €15 million in bridge financing to cover Folli Follie’s immediate obligations and support its restructuring plan. The package included €11 million for repayment of debt to Eurobank Leasing linked to the Factory Outlet property in Piraeus, as well as operating costs and taxes, and another €4 million in working capital.
The plan also envisaged a restructuring of the company’s €60 million bond, with 75% held by BofA and 25% retained by existing creditors as payment-in-kind securities. The financing would be secured against the Piraeus Factory Outlet, stakes in subsidiaries LuxCo and European AssetCo, and pledged bank accounts. The interest rate was set at 15%, with a two-year term and the option of early repayment if the property were sold.
Proceeds from other asset sales, such as the Mytilene Marina, would first go toward repaying BofA in full before any payments to other creditors. Despite offering a possible route forward, the October 4, 2025 deadline for signing an exclusivity agreement with the bank passed without result, as creditors withheld their consent.
Meanwhile, Sami Fais submitted a competing bid to acquire the Factory Outlet for €10 million in cash, promising immediate payment and the protection of employee rights. His proposal also included taking on €6 million in lease obligations to Eurobank and assuming the new lease agreement with Athens International Airport. That offer, too, expired without acceptance in early October.
According to sources, real estate consultancy Danos recently conducted a valuation of the Piraeus Factory Outlet and presented a sales strategy to CEO Samios. Bondholders have since approached Danos general manager Giannis Paraskevopoulos to explore advancing the sale, though the outcome of those talks remains unclear.
