Dizz Group to offload Tigné Mall to pay bond

Malta’s retail fashion giant, Dizz Group, owned by Diane Izzo and her husband Karl, who is also Malta’s ambassador to Montenegro, has been compelled to sell their shopping mall in Tigné, Sliema, to prevent defaulting on an €8 million bond that is set to mature next year.

The Shift is informed that a Heads of Terms agreement was signed a few weeks ago, through which Dizz Group will be transferring its lease agreement signed with Sliema Wanderers football club a few years ago.

Sources close to the retail fashion group told The Shift that the deal is still subject to due diligence, but if it goes through, the Group will be out of the woods, at least until next year, regarding the repayment of the €8 million bond issued in 2016.

Another bond, of €7.5 million, will be due in 2028.

No details are yet available on the price of the transfer, but sources said that it was close to €9 million.

In 2016, during the Labour administration of disgraced former prime minister Joseph Muscat, the government gave the green light for two indoor football pitches, previously given to Sliema Wanderers FC, to be re-leased to Dizz Group and converted into a shopping mall.

The deal involved the Group giving a multi-million-euro sponsorship to Sliema FC.

While sources told The Shift that DIZZ Group has so far always honoured its financial obligations with the football club, they insisted that talks with Bank of Valletta to refinance the Group’s massive debts are proving to be very difficult.

The Shift is informed that a similar arrangement, which DIZZ Group has with Floriana FC, to develop the Independence Arena is also under discussion, as the Izzos want out of the project. Unlike the case of Sliema Wanderers, the government has not consented to commercial development at the Independence Arena.

According to the latest published accounts, DIZZ Group reported a loss of €2.7 million for 2024, following another loss of €745,000 in 2023.

The company has significant assets but also tens of millions in liabilities. Of particular concern is the reported “tight” liquidity position of the Group.

Independent auditors CLA Malta flagged a “material uncertainty” that may cast doubt on the company’s ability to continue as a going concern in the latest published audit.

In a company announcement, the Group tried to reassure the market, insisting that the auditors issued an unqualified opinion in the auditor’s report.

Confirming that the Group has initiated a refinancing strategy, it said that “one of its options includes securing bank financing for part of its debt and progressing with the disposal of a key asset to honour its financial obligations as they fall due.”

“The Group remains committed to meeting its obligations and is actively implementing measures to ensure the scheduled repayment of the bond next year.”

Three other bond issues traded on the Malta Stock Exchange, due for redemption next year, are also under pressure. These concern millions of shares issued by the Malta Maritime Hub, The Shoreline Mall, and MIDI.