The Damage to Damas
Buying gold is almost a past time in Dubai. Dubai is sometimes even known as the city of gold, which, if you were to visit the gold souk, you would know why. There are many small gold companies dotted around Dubai and Abu Dhabi, but there is only one high end premium brand - Damas.
And today, Damas was hit hard. Was it due to the downturn? No. It was due to one of the founders pulling money out of the business in an authorised fashion. How much money? $165M, Yes, one hundred and sixty five million dollars. That's one expensive habit.
The chief executive of Damas, the largest jewellery retailer in the Middle East, resigned Monday after disclosing to the board of directors “unauthorised transactions” worth US$165 million (Dh605m), the company said in a statement to NASDAQ Dubai.
Amusingly, the company IPOed last year raising $270m. Who knows what's happened. And despite assurances that the money will be repaid, one can only think that Damas is now at the mercy of the shareholders and the market. I'm not sure that they'll take too kindly to running away with the money.
Damas chief resigns after telling of $165m deals
And today, Damas was hit hard. Was it due to the downturn? No. It was due to one of the founders pulling money out of the business in an authorised fashion. How much money? $165M, Yes, one hundred and sixty five million dollars. That's one expensive habit.
The chief executive of Damas, the largest jewellery retailer in the Middle East, resigned Monday after disclosing to the board of directors “unauthorised transactions” worth US$165 million (Dh605m), the company said in a statement to NASDAQ Dubai.
Amusingly, the company IPOed last year raising $270m. Who knows what's happened. And despite assurances that the money will be repaid, one can only think that Damas is now at the mercy of the shareholders and the market. I'm not sure that they'll take too kindly to running away with the money.
Damas chief resigns after telling of $165m deals
Labels: damas
posted by grapeshisha at 11:36 PM
2 Comments:
I wonder if he invested the money in gold? ;.)
If he did, there will be no problem, as gold price is so high now. He probably have lost or spent the money and cannot repay, and thus report and resign.
Post a Comment
<< Home