Fashion retailer Quiz is grappling with financial challenges, having initiated a strategic review.
- The company reports a notable downturn in both online and in-store traffic, driving a dip in sales figures.
- Store and concession sales decreased by 9.7% amidst a reduction in November revenues.
- Online sales similarly saw an 8.1% downturn, further hindering the company’s liquidity.
- Quiz is now weighing various financing options to maintain operations, with potential cash shortfalls looming.
Fashion retailer Quiz is currently facing significant financial hurdles, which have prompted the initiation of a strategic review of its financing options. The company recently announced that it is collaborating with advisors to explore ways to secure the necessary funds, aiming to avoid a cash crunch in the early months of 2025.
In November, Quiz observed a worrying decrease in consumer traffic both online and in physical stores, contributing to a notable drop in sales. For the period of four months ending 30 November, sales declined by 5.7% to £24.9 million. The downturn in foot traffic and e-commerce engagement underscores the challenges currently facing the retailer.
Specifically, the brand’s store and concession sales fell by 9.7%, resulting in revenues of £12.1 million, which was exacerbated by a significant drop in November. Similarly, online sales experienced an 8.1% decrease, bringing in £7.9 million. This drop in sales has tightened the company’s liquidity, leaving Quiz with only £1.2 million in liquidity headroom.
Given the sales performance during the critical month of November, Quiz’s board recognises the urgency in reviewing the group’s financial strategy and has decided to enlist advisory services to evaluate potential options. The group is determined to address the liquidity issues swiftly, as their existing bank facilities could be fully depleted by the first quarter of 2025 if current trends continue.
The retailer has committed to keeping shareholders informed as they assess and potentially implement solutions to prevent financial distress, underscoring their proactive stance amidst these challenges.
The future viability of Quiz hinges on its ability to secure additional funding and implement strategic financial measures.
