Fawaz Abdulaziz Alhokair (Cenomi Retail) Restructuring: Cuts Capital, Sells Brands (Details Inside)

Fawaz Abdulaziz Alhokair, a retail company known as “Cenomi Retail,” is making significant changes to its business structure. In a major overhaul, the company has proposed a capital reduction of 91.28%. This will bring their capital down to 100 million riyals, compared to the previous 1.147 billion riyals. To achieve this, they plan to cancel a substantial number of existing shares. The primary purpose of this capital reduction is to eliminate accumulated losses and streamline the company’s focus.

Furthermore, Cenomi Retail has approved the sale of 24 brands deemed non-essential. This includes the Alef brand and various food group brands. The sale of these brands is expected to generate revenue of approximately 650 million riyals. Additionally, the company is considering reducing the share value from 10 riyals to just 1 riyal per share.

These changes signal a strategic shift for Cenomi Retail. By eliminating accumulated losses and focusing on core business areas, they aim to strengthen their financial health. The sale of non-essential brands and the potential decrease in share value are part of this restructuring plan. However, the company is also looking towards the future. Following the sale of these brands, they plan to investigate the possibility of increasing their capital again, solidifying their financial standing in the long run.