Damas to close Italian subsidiary

Dubai: Dubai based jewelers Damas has announced it is shutting its money-losing Italian subsidiary.

Damas International said in a filing to the Nasdaq Dubai on Tuesday that it's liquidating the division, acquired in 2004, to prevent further losses.

The unit sells jewelry under the Stefan Hafner, IoSi, Porrati and Nouvelle Bague brands. Damas says its sales accounted for less than 2 percent of the family-run company's revenues last fiscal year.

The move comes one day after Damas replaced its chief executive after he told the company he made 'unauthorized transactions' worth as much as $165 million.

Damas operates some 450 jewelry stores, mostly in the Mideast.