Quiz's lenders hire restructuring advisors days before delisting vote

Quiz’s lenders are reported to have hired restructuring experts Interpath to advise it on the growing crisis at the fashion retailer. This comes just days before Quiz is set to hold a vote on delisting from the London stock market.

Last month, the fashion brand, chaired by former JD boss Peter Cowgill, said it would run out of cash in the first half of this year. The company, which employs approximately 1,500 people, operates approximately 60 standalone stores and dozens more concessions.

HSBC, which is Quiz's principal lender, hired Interpath, according to Sky News.

Quiz published a statement proposing its exit from the Alternative Investment Market (AIM) and going private in December. It is seeking approval for its proposal in a general meeting slated for 8 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", adding that it had a £4 million borrowing facility which expires at the end of June, which was repayable on demand.

In the same week, Quiz reported that its half-year losses more than doubled, warning it could exhaust its remaining cash by early 2025.

The fashion retailer attributed its ailing financial situation to "disappointing revenues" in the lead-up to Christmas, leaving its cash headroom "less than previously anticipated". The business will therefore require additional funding by early next year.

In its latest update published on 27 December, Quiz revealed its pre-tax losses had risen significantly, from £1.5 million to £4.7 million, for the six months ending 30 September. Sales dropped 7.5% to £39.1 million, due to a "marked decline in traffic both online and in-store".

This comes amid growing financial pressure on retailers who are preparing for looming hikes to employer's national insurance imposed by the government.