Quiz lender hires advisors ahead of delisting vote

Quiz’s principal lender has reportedly drafted in advisors to help the company explore restructuring options amid a “growing crisis” at the retailer.According to Sky News, HSBC hired restructuring experts from Interpath Advisory ahead of a vote on delisting from the London stock market.

Quiz reportedly plans to hold a shareholder vote this week in order to delist from the public markets amid ongoing financial difficulties.

The vote will need a 75% majority from shareholders to pass, with the move expected to take effect on 23 January 2025 should it pass.

Founder Tarak Ramzan and his family, along with major investors Tajveer and Amraj Gill, are all set to vote in favour of the motion.

Quiz stated that the considerable cost, management time and the legal and regulatory burden associated with maintaining the company’s admission to trading on AIM is one of the reasons behind the move.

It comes as Quiz recently reported its pre-tax losses widened to £4.7m in the six months to 30 September 2024. 

The fashion retailer said that its “disappointing” results in part reflect the impact of inflationary pressures on consumer confidence and spending, which has led to an 8% reduction in revenues during the period to £39.1m. 

Online sales dropped 15.9% to £10.6m YoY, while in-store sales dipped 7.7% to £20.3m during the period.

The performance of the UK stores and concessions channel was said to be impacted by “weak” footfall trends reflecting subdued consumer demand.

In its latest update, Quiz said: “Given the disappointing level of revenues in the important Christmas trading period, as announced on 6 December 2024, the cash headroom available to the business is less than previously anticipated.

“As a result, the board anticipates that additional funding will be required by the group in early 2025.”

It added that it had a £4m borrowing facility which expires at the end of June, and is repayable on demand.

Quiz has been approached for comment.