DIZZ Group loses Kalkara restaurants as financial problems deepen

Updated to include statement from DIZZ Group 

DIZZ Group has lost control of two restaurants on the Kalkara seafront as the Malta-listed fashion importer grapples with mounting debt obligations.

The group, owned by Diane Izzo and her husband Karl Izzo, president of the Aquatic Sports Association of Malta, ceased operating the restaurants Marea and Rosso Pomodoro several weeks ago after being ordered to close down and vacate the premises, according to sources familiar with the matter.

The decision followed the accumulation of hundreds of thousands of euro in unpaid rent over several years.

The premises form part of a 25-year concession granted by the Malta Council for Science and Technology (MCST) to JayKay Investments, a company owned by architect and businessman Joseph Bondin from Mosta. JayKay secured the lease following a call for expressions of interest and subsequently sublet the waterfront property to DIZZ Group.

Relations between the two parties deteriorated after prolonged payment delays, prompting the leaseholder to terminate the sublease. After repeated warnings, DIZZ Group was instructed to vacate the site.

JayKay Investments is now expected to transfer part of its interest in the lease to a new operator following a partial sale of the company. Planning applications have been filed to convert part of the former restaurant space into a wedding venue.

DIZZ Group has not issued a company announcement regarding the closure of the Kalkara restaurants, despite being a publicly listed company with outstanding bond obligations due to mature in the coming months.

The group is facing pressure to refinance or repay an €8 million bond due shortly. According to its latest published accounts, DIZZ Group lacks sufficient liquidity to meet its bond obligations without divesting assets. Even in that scenario, DIZZ Group would remain highly leveraged.

The company reported a loss of €2.7 million for the year ended 2024, following a loss of €745,000 in 2023. Its auditors, CLA Malta, flagged a “material uncertainty” in the most recent audit report, raising doubt over the Group’s ability to continue as a going concern.

In August 2025, DIZZ Group announced a preliminary agreement with a third party to transfer the lease of its Shopping Mall in Tigné, Sliema, a move intended to inject cash into the business. The transaction was subject to due diligence and other conditions, but has yet to be concluded.

The closure of the Kalkara restaurants adds to growing concerns over the group’s financial resilience as it approaches key debt maturities.

Statement from DIZZ Group

Speaking to The Shift following the publication of the story, DIZZ Group insisted that it exited the two restaurant leases in Kalkara on its own terms and following an agreement in writing as part of a strategy to reduce costs, limit further losses and strengthen its financial position to honour its commitment to repay its €8 million outstanding bond in full when it matures later this year.

“Both parties explored other means of increasing revenue for months at the restaurants, including the possibility of holding events throughout the year. The concessionaire made it clear that there was no possibility of obtaining a permit for this, and it was at that time that the management of DIZZ group started working on the idea of terminating the lease agreement due to unsustainable costs,” the group’s spokesperson said.

“The decision to terminate the lease was a strategic one and helped ensure that the group minimised the losses and at the same time improved the group’s performance. Late in 2025, the group entered into discussions with the concessionaire, and it was mutually and amicably agreed to terminate the lease as from the beginning of 2026,” the spokesperson added.

The group clarified that at the time of signing, only a few thousand euro remained unsettled. “More importantly, those employees who expressed the wish to keep working for DIZZ group were offered alternative employment within the group, keeping the same terms and conditions,” Dizz insisted.

The group’s statement was backed by architect and landlord Joseph Bondin, who said, “We settled all differences with DIZZ Group in an amicable agreement. All outstanding dues were settled”.