Quiz is navigating financial challenges after warning it might run out of cash following poor trading results.
- The company has engaged advisors to explore financial and strategic options to address its liquidity needs.
- A decline in both online and in-store traffic in November contributed to a 5.7% drop in sales, totaling £24.9 million over four months.
- Significant reductions in revenue saw store and concession sales fall 9.7% and online sales decline by 8.1%.
- Quiz is reviewing its liquidity and bank facilities as cash reserves are lower than anticipated.
Quiz, a fashion retailer, is currently facing significant financial hurdles, releasing a statement indicating it might deplete its cash reserves following a period of poor trading results. To mitigate this challenging situation, the company has enlisted the help of external advisors to review various financing and strategic avenues. The need for such measures stems from their expectation of requiring additional capital by the first quarter of 2025.
The downward trend in sales was apparent as the company reported a 5.7% decline in total sales for the four-month period ending November 30, 2024, resulting in revenues of £24.9 million. November proved to be particularly challenging, with a marked decrease in footfall both online and in physical stores. This drop was so profound that it dragged down their store and concession sales by 9.7%, recording £12.1 million, and further caused an 8.1% fall in online sales, bringing in £7.9 million.
This disappointing November performance was not only a setback in sales figures but also significantly impacted the company’s financial flexibility. Quiz’s available liquidity has been reduced to £1.2 million, a figure lower than they had previously projected. Given these financial constraints, the potential full utilization of the company’s bank facilities by early 2025 has become a pressing concern. Consequently, the board is actively examining various strategic options to improve liquidity.
In a statement, the company highlighted that ‘given the decline in 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.’
Quiz is actively pursuing strategic and financial solutions to navigate its current liquidity challenges efficiently.
