Quiz, a fashion retailer, is considering delisting from the AIM to address ongoing financial difficulties.
- The decision to delist requires a 75% shareholder vote in favour at the meeting on 8 January 2025.
- Declining sales, aggravated by the cost-of-living crisis, have significantly impacted Quiz’s financial standing.
- Quiz’s liquidity concerns have emerged due to reduced sales, especially in November 2024, lowering cash reserves.
- Founder Tarak Ramzan and major investors support the move, which they believe is in shareholders’ best interests.
Quiz, a prominent name in the fashion retail sector, is actively exploring the potential of delisting from the Alternative Investment Market (AIM) as a strategic move to mitigate its enduring financial challenges. This decision, which will be put to a shareholder vote requiring a 75% majority at a scheduled meeting on the 8th of January 2025, underscores the retailer’s pursuit of more flexible financial manoeuvres as a private entity.
The systemic decline in sales, most notably influenced by the widespread cost-of-living crisis, has led to an environment where Quiz is struggling to maintain its financial health. The recent months have seen a significant reduction in both online and physical store traffic, culminating in a 5.7% drop in sales to £24.9 million for the four months leading up to the end of November 2024. This downturn has unexpectedly constrained the company’s cash flow to the point where total liquidity stands at just £1.2 million, raising alarms about the sustainability of its current operations.
Quiz has voiced concerns that, without a reversal in trading performance during the critical pre-and-post-Christmas sales period, their existing bank facilities could be exhausted by the first quarter of 2025. In response, the company’s board has been actively evaluating their financial and strategic options, engaging advisors to explore feasible avenues for stabilisation.
Adding to the operational uncertainties, Gerry Sweeney, the Chief Financial Officer, announced his impending departure amidst these financial difficulties. Despite leaving his role after over eight years, he will remain with the company until the end of March 2025 to assist in a smooth transition to his successor, all while the company seeks solutions to improve its waning sales and profits.
Founder Tarak Ramzan and significant stakeholders like Tajveer and Amraj Gill, have shown explicit support for delisting, advocating that it aligns with the long-term interests of both the company and its investors. This strategic pivot hints at a potential recalibration of Quiz’s business model and financial strategy in an increasingly challenging retail climate.
Quiz’s potential delisting reflects its attempts to adapt to financial adversities, aiming for better stability as a private company.
