Rizzo Group and Morris-Accent enter into an agreement with Lundbergs Intressenter and BT Outlet on the transfer of the operations of 16 stores in Sweden and Norway and enter into an LOI with Sajaco Nordic Holding

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STOCKHOLM (30 August 2022) – Rizzo Group AB (publ) (“Rizzo Group” or the “Company”) and its wholly owned Norwegian subsidiary Morris-Accent AS (together the “Sellers”) have today, on 30 August 2022, entered into an agreement with Lundbergs Intressenter AB , org no. 559232-4858, and BT Outlet AS (collectively the “Purchasers”) regarding the collection transfer of the business regarding a total of 16 stores in Sweden and Norway (the “Transfer”). The purchase price amounts to a total of approximately SEK 10 million in cash and delivery of goods within the Seller’s regular assortment to the Seller’s other stores corresponding to approximately SEK 5 million. Rizzo Group has also entered into a letter of intent (LOI) regarding an in-depth collaboration with Sajaco Nordic Holding AB (“Sajaco”) in order to investigate a financing solution for the Company’s continued operations (“the Collaboration”).
Background to the Transfer and the Collaboration
Rizzo Group has previously announced that the Company has chosen to focus the Group’s operations on the sale of bags and accessories, which gives the Company the opportunity to further develop a single store concept that continues to bear the names Rizzo in Sweden and Morris in Norway. The board of Rizzo Group has consequently taken the decision to carry out the Transfer in order to further refine and focus the Company’s operations on its deemed key stores. CEO Lars Fins assesses that the Transfer, and also the Collaboration, is also necessary to enable the Company to lower its overheads and increase its margins. The company estimates that the Transfer will reduce the group’s costs by approximately SEK 40 million on an annual basis. On February 16, 2022, the composition decided by the Stockholm District Court won legal force, whereupon the Company’s corporate restructuring was completed, which means that the Company’s composition creditors must be offered payment for claim amounts up to SEK 2,000/each as well as payment of 25 percent of the excess amount. Of the purchase price that the Company receives through this business transfer, SEK 7 million shall be used to pay the composition to the Company’s composition creditors.
The transfer in brief

The Sellers and the Buyers have today agreed to sell and buy respectively the operations of a total of 16 stores regarding shop premises, including leases, fixtures, stock and personnel, and on the terms set out in the transfer agreement. The stores are located in Sweden and Norway. The transfer is divided into two rounds, of which four Swedish and six Norwegian stores are included in “Round 1” and transferred as of 31 August 2022 and four Swedish and two Norwegian stores are included in “Round 2” and transferred as of October 1, 2022. The purchase price for the Transfer amounts to assessed market value and amounts to a total of approx. SEK 10 million for Round 1 and the equivalent of approx. SEK 5 million, incl. VAT, for Round 2. The purchase price for Round 1 must be paid in cash by The Buyers to the Sellers on 31 August 2022 and the purchase price for Round 2 must be paid by the Buyers by delivery of agreed goods within the Sellers’ regular range to stores specified by the Sellers corresponding to a wholesale value of SEK 5 million, including VAT, and must be completed by the Buyers no later than 15 October 2022. During the period up to and including December 31, 2022, the buyers have the right to use the trademarks “Rizzo” and “Morris” free of charge. This right applies only in the premises covered by Round 1 and Round 2 and in accordance with the transfer agreement in general. The transfer of the respective leases covered by Round 1 and Round 2 requires the relevant landlord to submit its approval to the respective transfer permit no later than 31 October 2022. In the event of non-approval(s), the applicable Seller shall firstly offer the applicable Buyer another equivalent store and secondarily compensate the applicable Buyer through an appropriate compensation agreed upon by the parties for the non-transfer.
Brief about the Cooperation
Rizzo Group and Sajaco have started negotiations regarding the forms for the Parties’ continued cooperation after the Transfer. The purpose of the Collaboration is to investigate a solution regarding Rizzo Group’s financing and thus continued operation. The negotiations shall continue until the objective has been achieved, however until 31 October 2022 at the latest. The company will publish further information about the Collaboration as soon as the negotiations lead to any concrete information.For further information, please contact:
Lars Fins, CEO, phone: +46 (0)8 508 99 200, email: [email protected]
This information is information that Rizzo Group AB is obliged to make public according to the EU’s market abuse regulation. The information was provided, through the care of the above person, for publication on August 30, 2022 at 20:30 CEST.About Rizzo Group
Rizzo Group AB (publ) is a leading player in bags and accessories in Sweden and Norway with a total of 86 stores. The business is run through the wholly owned Rizzo and Morris chains with a range of own and external brands. Rizzo Group AB (publ) is listed on Nasdaq Stockholm under the ticker RIZZO B with ISIN code SE0000396822 and has its headquarters in Stockholm. The group has approximately 237 employees (full-time positions). For more information, visit www.rizzogroup.se
Rizzo Group
+46 8 508 99 200
[email protected] The following attachments are available for download:
Release See full press release and other news from this company at Cision News.
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