Scottish fashion retailer Quiz has seen its shares drop by more than 40% after issuing a warning about potential funding challenges in the coming months. The company, which operates 62 UK stores and 47 concessions, reported a significant decline in sales during a crucial trading period.
For the four months ending November, Quiz’s sales fell by 5.7% to £24.9 million compared to the same period last year. This included a 9.7% drop in sales across UK stores and concessions and an 8.1% decline in online sales. The company attributed the slump to reduced footfall in November, a key trading month, which was only modestly offset by spending during Black Friday promotions.
The retailer revealed that weaker-than-expected performance has left it with less cash headroom than anticipated, with just £1.2 million available at the end of November. Quiz also carries borrowings of £2.8 million and has access to a £4 million lending facility due to expire in June 2025. However, the company warned that it expects to fully utilise this facility by the first quarter of next year.
In response to the financial strain, Quiz is reviewing its financing options and working with advisers to secure additional funds. The company’s largest shareholder has already offered a potential further £1 million in support.
This latest development highlights ongoing challenges for retailers navigating reduced consumer spending and economic uncertainty, with Quiz now under pressure to stabilise its financial position while addressing declining sales performance.
