Fashion retailer Quiz has seen its value plummet after warning of a possible need for urgent funding due to poor sales performance.
Shares dropped by 43% as the company, which operates 62 UK stores and 47 concessions, reported a “marked decline” in demand both in-store and online last month—a crucial trading period. A year-on-year drop in store traffic during November led to a “significant reduction in revenues,” only slightly offset by spending during the Black Friday weekend.
Quiz revealed that its weaker-than-expected performance left it with just £1.2 million in cash reserves at the end of November, falling short of expectations. This comes as the retailer faces £1.7 million in additional costs following National Insurance increases announced in the Budget. The company also carries £2.8 million in borrowings and has a £4 million lending facility set to expire in June, which it now anticipates fully utilizing by early next year.
The retailer’s largest shareholder has previously offered a potential additional £1 million in funding, but bosses are now reviewing financing options with advisers to secure further funds. Without a significant turnaround in performance, Quiz has warned it will require extra cash during the first quarter of 2025.
