Fashion retailer Quiz has begun a review of financing and strategic options following poor trading that has resulted in lower than expected cash headroom.
Quiz reported that after encouraging trading between August and October, in November – an important trading month, it “experienced a marked decline in traffic both online and in-store compared to previous months and the comparable period in the prior year.”
The downturn means that sales for the eight months to the end of November only reached £52.2m – 8.6% lower than the previous year.
Quiz warned that because of, and subject to, trading performance in the run-up to and after Christmas, its “existing bank facilities could be fully utilised in the first quarter of 2025.” The agreement of a £1m loan from founder and main shareholder Tarak Ramzan is still outstanding and is subject to approval by Quiz’s bank.
The retailer said: “Given the decline in the revenues during the key trading month of November and the requirement to improve the liquidity of the business, the board is reviewing the group’s financing and strategic options and has engaged advisors to consider appropriate options. A further update to shareholders will be provided as and when appropriate.
“In the absence of either a material improvement to trading during the important pre and post-Christmas period, the majority shareholder loan being agreed and made available to the group or a combination of these eventualities, the board anticipates that additional funding will be required by the group in the first quarter of 2025.”
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