Dizz Group has issued a formal company announcement in response recent media reports, published six days ago, which reported on auditor concerns regarding the group’s financial position and its ability to repay an unsecured bond maturing next year.
In its statement, the group emphasised that the auditors had in fact issued an unqualified opinion in their report, stressing that the article may have created an exaggerated sense of uncertainty.
Management underlined that, as disclosed in its latest audited financial statements, Dizz Group has already set in motion a refinancing strategy. This plan includes securing additional bank financing and moving ahead with the disposal of a key asset to ensure that the company honours its obligations as they fall due.
The company also referred to separate announcement, published on 15th July, in which D Shopping Malls Limited confirmed it had entered into Heads of Terms for the transfer of a lease agreement concerning one of its operational premises.
This transaction, once finalised, is intended to form part of the group’s broader efforts to strengthen liquidity and support the scheduled repayment of the bond next year.
The group reaffirmed its commitment to meet all obligations and stated that it is “actively implementing measures” to safeguard bondholders’ interests.
The statement follows heightened market attention after a recent article, where Dizz Group’s auditors, while issuing a clean opinion, flagged the presence of a “material uncertainty” regarding the Group’s going concern status.
The audit report noted that the company recorded a loss of €2.69 million in 2024, largely driven by depreciation and lease charges, and that liquidity constraints meant refinancing would be essential to meet its obligations.
The newspaper further highlighted that the group faces the repayment of an €8 million unsecured bond in 2026, and that as of April, when the financial statements were approved, refinancing discussions had yet to be formalised into binding agreements.
Dizz Group directors Diane and Karl Izzo acknowledged the challenges but expressed confidence that measures in place would secure the necessary funding. Ms Izzo also told the newspaper that bond repayment will take place “beyond any speculation,” while confirming ongoing engagement with the Malta Financial Services Authority.
Dizz Group manages a portfolio of fashion stores and food and beverage outlets, representing brands including Nespresso, Caffè Pascucci, Michael Kors and Terranova. Beyond retail, the group also holds a portfolio of residential properties, offices and commercial spaces, including the D Business Centre in Mrieħel.
