Brief: Venue Retail Group implements new strategy, sets new targets, issues shares
24/03/2016 07:00
March 24 (Reuters) - Venue Retail Group VRGb.ST
* Says sets new financial targets, adpopts new strategy
* Says board decides on fully guaranteed 132 million SEK
new preferential rights issue
* Says subscription price in 132 mln SEK issue 1 crown per
series B share
* Says board proposes directed issue of series C shares to
all holders of the convertible loan of around 79 million SEK
convertible loan
* Says guaranteed issue and convertible loan redemption adds
total 211 million SEK in equity
* Says to close 35 stores
* Says overview and closing of stores will give one-off
costs of 164 mln SEK of which 119 mln SEK will hit Q2 and 45 mln
SEK in Q3
* Says sets new target to reach 5-7 percent EBIT margin on
accessories within 3-5 years
* Says sets new target to reach 7-9 pct EBIT margin on shoes
within 3-5 yrs
* Strategic review includes among other things structural
transactions, capital structure and other possible changes, all
in order to achieve a long-term financial stability and
profitability
* Parallel to the long-term package of measures, the company
will continue to evaluate other strategic alternatives in order
to quickly achieve satisfactory profitability
Further company coverage: VRGb.ST
(Reporting by Stockholm Newsroom)
((stockholm.newsroom@thomsonreuters.com; +46-(0)8-700 10 17;))