Quiz is facing financial challenges due to poor trading results.
- The company is reviewing financing and strategic options for 2025.
- Advisors have been hired to assist with potential additional funding needs.
- Sales have significantly declined both online and in-store, especially in November.
- Existing financial resources may be fully utilised early in the next year.
Quiz, a fashion retailer, is experiencing significant financial difficulties following a period of poor trading, with consequential concerns about running out of cash. Working with advisors, the company has launched a review of its financing and strategic options to explore potential solutions.
The necessity for this review arises as Quiz anticipates needing additional funding in the first quarter of 2025. The company has noted a marked decline in both online and in-store traffic, which has adversely impacted sales figures.
In the four-month period ending 30 November, Quiz reported a 5.7% drop in sales to £24.9 million. Most notably, November saw a noticeably disappointing level of sales, which reduced the cash headroom significantly below expectations.
Sales in stores and concessions fell by 9.7% to £12.1 million. This was exacerbated by a substantial decline in revenues during November, while online revenues decreased by 8.1% to £7.9 million.
As a result of dwindling sales in this crucial trading month, the available liquidity headroom has shrunk to £1.2 million. Quiz has warned that its existing bank facilities could be fully exhausted by early 2025, contingent on pre-and post-Christmas trading outcomes. The board is considering various financing and strategic options and will update shareholders as necessary.
Quiz’s financial outlook remains uncertain, necessitating close scrutiny of strategic and funding options.
