Las Vegas, NV & Hong Kong, April 16, 2020 (GLOBE NEWSWIRE) -- 12 ReTech Corporation (OTC: RETC) releases current information about the impact of COVID-19 on its operations.
During the last 30 days the Company has been forced by government order to temporarily close all of its Bluwire retail stores. At the same time, the Company laid off most of its staff in its 12 Fashion Group including staff for Rune NYC, LLC, Social Sunday NYC, and Red Wire Design and has greatly curtailed operations in that business group. To further streamline operations and shed debt the Company shuttered its Red Wire Group, LLC factory via a chapter 11 filing, finding it to be more cost effective to outsource future production in NYC. All of the Company’s landlords and other creditors have been very understanding and have abated or put a moratorium on payments allowing the Company the time it needs to restart operations after these mandatory shutdowns.
During this COVID-19 crises, the 12 Fashion Group has been successful in designing products to be used by Americans during and after this emergency shutdown. As an example, the 12 Fashion Group has been successful in designing and selling washable face masks to third parties and is actively taking orders. These durable, stylish false masks are also now available for sale to the general public on the Company’s online portals. Our normal business activities for 12 Fashion Group are proceeding as we are taking orders for fashion products to be manufactured and delivered later in the year. In this fashion, we are continuing to build our pipeline of sales orders.
Our Bluwire operations have been successful sourcing innovative and interesting products for its stores. When our stores are allowed to re-open, management believes the new merchandising will attract a larger portion of the smaller retail consumer traffic that airports and casinos may experience once retail business activities resume. Bluwire is also building an online portal to sell those and other products which it hopes to be able to launch in the near future. Our upcoming online portal will allow Bluwire to reach shoppers no matter where the shopper is located therefore reaching shoppers away from our stores and reducing our reliance on retail foot traffic.
The Technology Division of 12 ReTech has also been busy. It is making progress on its new innovative APP that is based on its 12 Sconti platform which will make it easier and safer for consumers to purchase goods for pickup or delivery from retail stores. The APP is also designed to provide a portion of sales revenues to charities whom would assist individuals and families that are suffering from the COVID-19 illness. All of our current companies will be featured on our APP and we will invite other retailers to offer their goods and services on it as well. This effectively creates another sales channel for both us and them.
Many great features will also help travelers and we want other retailers to participate. With this APP, we hope to create another platform for retailers to reach new consumers. We are planning to add this APP to our family of experiential technology products which are designed to assist retailers and attract consumers.
As for Capital Raising, the Company and its subsidiaries have applied for the recently legislated CARES ACT Paycheck Protection Program loans guaranteed by the U.S. government so that it can rehire many of its existing employees to continue to advance our initiatives. We have reached out to all of our current and recently laid off employees with a skills assessment survey so that we can hire as many back as possible, even in advance of the governments authorization to re-open stores.
Our finance department is working hard to complete our regulatory filings within the extended deadline of May 14, 2020 that the United States Securities and Exchange Commission now allows for the publication of our Form 10-K Annual Report. Our filings are complicated by the fact that we made numerous acquisitions in 2019 that require an independent valuation appraisal. Another complexity is the auditors work to perform our annual audit including inventory verification at the retail locations that have been closed due to the COVID-19 mandated closures. Everyone is working hard, while mostly working from home to keep themselves and their families safe as our governments have recommended or mandated.
Angelo Ponzetta, our CEO had this to say, “These are troubling times and we are very concerned for the safety and health of our employees, customers and vendors, both physically and financially. It’s why we made early moves to allow our employees to obtain governmental assistance and we swiftly applied for the PPP Loans to bring as many of them back as possible to work in a safe environment. We remain committed to the long term success of our Company for the benefit of our shareholders, stakeholders, vendors, employees and our customers who rely upon us.”
Mr. Ponzetta added, “Thank you to all of our vendors and landlords who have helped us through this difficult time, we could not get through this without you. And thank you to our employees and contractors whose dedication to the Company, to each other and to their communities are greatly applauded and appreciated”.
About 12 ReTech Corporation:
“RETAIL REINVENTED”
12 ReTech Corporation has REINVENTED RETAIL for both our own retail outlets and other merchants who would want to license our cutting-edge retail software to experientially engage with consumers, increase revenues, reduce expenses and provide superior service to their customers. In addition to our software licensing business, the company has eight retail outlets that sell electronics and travel-related products at premium U.S.A. airport and casino locations under our Bluwire brand. We create and sell fashionable apparel under our Rune NYC, Social Sunday, Emotion Fashion & Lexi-Lu brands. We produce clothing and travel accessories at our Red Wire Group operation.
As a vertically integrated omni channel retailer 12 ReTech’s technology team truly understands and develops what merchants need in order to thrive in today’s demanding retail environment. We give our retailer clients the abilities and tools that enable them to compete effectively with the likes of Amazon, Walmart and others.
For more information about our Company visit us at www.12ReTech.com. To have your products carried in our stores visit www.shopbluwire.com. To learn about our complete design and production services for sewn products, contact us at sales@12fgrp.com or visit www.redwire.design. To shop our brands please visit www.runenyc.com and www.lexiludancewear.com. For retailers who would like to learn more about our cutting-edge software, contact us in the U.S.A at (530) 539 4329 or at solutions@12ReTech.com.
Safe Harbor: This document contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, the ability of the Company to successfully implement its turnaround strategy, changes in costs of raw materials, labor, and employee benefits, as well as general market conditions, competition and pricing. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this letter will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as representation by the Company or any other person that the objectives and plans of the Company will be achieved. In assessing forward-looking statements included herein, readers are urged to carefully read those statements. When used in the Annual Report on Form 10-K, the words "estimate," "anticipate," "expect," "believe," and similar expressions are intended to be forward-looking statements.
Investors Relations Contacts:
Mark Gilbert
Magellan FIN, LLC
mgilbert@magellanfin.com
317-361-2392 (USA)
Corporate Headquarters
investors@12ReTech.com