Fashion retailer Quiz has left the stock market amid struggles to stay afloat, with talks of potentially shutting down some of its shops.
The company, which operates 62 outlets and 47 concessions throughout the UK, officially withdrew from London’s AIM market on Thursday morning.
Just before the festive season commenced, the company expressed intentions to leave the stock market as part of a strategy to reduce expenses. This move was subsequently backed by shareholders earlier in January.
The high-street chain, providing jobs for about 1,500 people, signalled an impending cash crisis in the near term if it fails to secure additional financial backing soon. Quiz experienced “disappointing” sales over the Christmas trading period, and said that cash reserves are “less than previously anticipated”.
The brand attributes this shortfall, in part, to the “impact of inflationary pressures on consumer confidence and spending”. To navigate these choppy waters, Quiz is working with advisers on strategies to generate or obtain necessary funding vital for securing the company’s future.
Chairman Peter Cowgill emphasised the necessity to “substantially reduce” costs, fuelling speculations that store closures might be on the horizon. According to reports by The Telegraph earlier in the week, Quiz could be contemplating shutting down as much as a third of its premises to cut back on spending.
The business is reportedly seeking guidance from restructuring experts at Teneo to consider various routes including pre-pack administration or a company voluntary arrangement (CVA) setup that could enable such cost-saving measures through store closures.
It is believed that the company has not yet made any decisions over whether it will proceed with closures or a major restructuring.