Quiz plans to exit stock market amid rising financial pressures

Womenswear brand Quiz has released a statement proposing its exit from the Alternative Investment Market (AIM) and going private, as a result of ongoing financial pressures.

Quiz is seeking shareholder approval for its proposal in a general meeting slated for 8 January 2025.

In order for the plan to go ahead, 75% of shareholders will need to vote in favour of the privatisation. If all goes to plan, the delisting is expected to take place on 23 January 2025.

Tarak Ramzan, who founded the retailer in 1993, is expected to vote in favour of the move, along with major investors Tajveer and Amraj Gill.

Quiz said the decision was "in the best interests of the company and its shareholders".

Earlier this month, the retailer plunged in value after warning it could need urgent funding following poor sales.

The retailer has 62 UK stores and 47 concessions, and said at the time that it had seen a "marked decline" in demand in its stores and online in the month leading up to the news – a key trading period, leading to a "significant reduction in revenues".

Sales dropped by 5.7% to £24.9 million for the four months to the end of November, compared with the same period in 2023.

This included a 9.7% decline across its bricks-and-mortar presences, as well as an 8.1% decline online.

Quiz said this weak performance meant less of a cash buffer than it had expected, at £1.2 million at the end of November.

Tarak International Ltd, Quiz's holding company, has borrowings of £2.8 million and currently has a lending facility worth £4 million, which is due to expire in June. However, the retailer warned that it planned to use these fully by the end of Q1.

The retailer announced in August that it had swung to a loss, after sales slumped in the face of cost-of-living pressures on customers.

Quiz reported a pre-tax loss of £6.7 million for the year to 31 March in the delayed update, sliding from a £2.3 million profit a year earlier. Revenues also dropped by 10.6% to £82 million for the year.

Chief Executive Sheraz Ramzan said at the time that its performance had been "disappointing", but stressed it was committed to its turnaround strategy.

Ramzan said: "Whilst these results are disappointing – in part driven by the challenging macroeconomic conditions impacting many retailers – we have a clear plan to improve performance by leveraging our key strengths as an omni-channel retailer with a distinctive brand."

In October, Quiz's Chief Financial Officer exited the company after eight years.