Quiz may need further funding after “disappointing” November
Quiz is reviewing its financing and strategic options after trading was impacted by a “marked decline” in both store footfall and online traffic in November.
This meant that revenue fell by £1.5 million to £24.9 million in its most recent quarter, and was down 8.6% to £52.2 million in the eight months to 30 November.
In a statement, the fashion retailer said it had £4 million of bank facilities, which are scheduled to expire on 30 June 2025, and at 5 December had net borrowings of £2.8 million and total liquidity headroom of £1.2 million
Due to the disappointing November and the cash headroom available to the business being less than previously anticipated, the group said its existing bank facilities could be fully utilised in the first quarter of 2025.
Quiz 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.”
The retailer announced back in August that its founder and largest shareholder Tarak Ramzan had offered to provide a £1 million loan facility for additional liquidity headroom for working capital purposes.
Today it said: “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.”
