Brief: Venue Retail Group AB Applies For Company Restructuring

Rizzo AB

20/11/2019 07:35

Nov 20 (Reuters) - Venue Retail Group AB  VRGb.ST :
    * APPLIES FOR COMPANY RESTRUCTURING
    * DECISION IS BASED ON LIQUIDITY SHORTAGE AND IS NECESSARY TO GIVE CO TIME NEEDED TO
NEGOTIATE A
LONG-TERM FINANCIAL SOLUTION AND IMPLEMENT OPERATIONAL AND ORGANIZATIONAL CHANGES
    * LIQUIDITY REMAINS STRAINED
    * CO'S MAIN SHAREHOLDERS INTEND TO FULLY GUARANTEE RIGHTS ISSUE WHICH IS INTENDED TO BE
IMPLEMENTED DURING SUMMER OF 2020
    * SAYS INVESTMENT IN ONLINE BUSINESS HAS NOT YET COMPANSATED FOR LOST SALES FROM CLOSED
STORES
    * TO FURTHER CLOSE STORES THAT ARE NOT DEEMED TO COMPLY WITH CO'S PROFITABILITY
    * REBUILDING AND CHANGES IN UNIT RIZZO INTERNATIONAL AB REDUCED SALES WITH ABOUT SEK 20
MILLION
    * TO BETTER CONNECT PHYSICAL STORES WITH ONLINE SALES
    * TO REDUCE NUMBER OF HOURS WORKED IN STORES
    * IT IS ESTIMATED RESTRUCTURING , INCLUDING ARRANGEMENT, WITH IMPLEMENTATION OF ABOVE
MEASURES
WILL BE ABLE TO MAKE BUSINESS PROFITABLE

Source text for Eikon:  ID:nWkr1fMBkJ 
Further company coverage:  VRGb.ST 

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