Rizzo Group, formerly known as Venue Retail Group, has applied for a new corporate reorganization with a Stockholm-based court.
The decision follows a “sharp drop in sales” due to harsher restriction measures following a second wave of the Covid-19 pandemic from October 2020.
The request comes six months after the latest restructuring that lasted from Nov. 20, 2019 to Oct.13, 2020.
In a press release, the Swedish retailer which specializes in suitcases, travel accessories and footwear said that despite the previous restructuring, an agreement with creditors and a SEK 94.5 million (€9.3m-$10.9m) rights issue, it needs more time to implement a new business plan.
Since March 2020, Rizzo’s sales have fallen by 43 percent, or SEK 345 million (€33.8m-$39.3m). Between November 2020 and February 2021, revenues dropped by SEK 142 million (€13.9m-$16.4m). Rizzo claims to have reduced overheads by more than SEK 100 million (€9.8m-$11.6 m) annually and to have obtained the deferral of SEK 56.2 million (€5.5m-$6.5 m) in value-added tax payments and employer contributions, of which SEK 26.2 million (€2.6m-$3.0m) in 2020 and SEK 30.0 million (€2.9m-$3.5m) in 2021.
Rizzo achieves about 40 percent of its sales from suitcases and travel accessories and was particularly affected by restrictions on travel. The company plans to invest further in e-commerce and other channels, as well as introduce solutions, such as drop ship, to reduce stocks. It intends to continue streamlining its business by continuing to outsource activities.
Early March, Rizzo suspended the purchase of goods and services.