Rizzo Group, formerly known as Venue Retail Group, has applied for a three-month extension to its corporate reorganization which began on March 23 following a ruling by a Stockholm-based court. On April 23, the group’s wholly-owned Rizzo International also applied for corporate reorganization.
In a statement, the Swedish company said that during the restructuring period it has acted to solve its financial issues and improve profitability. The measures include negotiations with landlords to reduce rents as well as shareholder support to complete the rollout of its new store concept in the remaining Accent stores in Sweden. Under the new business model, Accent stores were rebranded Rizzo and their product offering was broadened. The same format was applied in Norway, but stores in the country continue to operate under the Morris banner.
Rizzo also terminated some consulting contracts and launched some new projects to lift sales and profitability.
The company entered into a loan agreement of SEK 12.2 million (€1.2m-$1.4m) with Switzerland-based Archelio Capital, which is owned by Nicole Nordin and Peter “Foppa” Forsberg. The funds will finance the day-to-day operations. The loan expires on Sept. 30 and bears an annual interest rate of 3 percent.
Rizzo has the right to repay the loan, entirely or partially, with newly issued series B shares at a subscription price of SEK 0.1 each (€0.010-$0.012). The group indicated that the loan is “a step in the right direction” towards strengthening its balance sheet in order to meet its short-term cash needs and improve its long-term financial position.
Archelio Capital invests in fashion and luxury brands as well as high-end designers.