Quiz has proposed to cancel its listing on the Alternative Investment Market (AIM) and re-register as a private limited company, as it continues to grapple with ongoing financial difficulties.
The fashion retailer is seeking shareholder approval for the proposal in a general meeting scheduled for 8 January 2025.
A 75% majority of votes cast will be required for the resolution to pass. If approved, the delisting is expected to take effect on 23 January 2025.
Founder Tarak Ramzan and his family, along with major investors Tajveer and Amraj Gill, are all set to vote in favour of the move.
The retailer said delisting will ‘be in the best interests of the company and its shareholders’.
Related Story
It comes as Quiz launched a strategic review earlier this month, after warning that it could run out of cash in the new year amid its poor trading performance.
Back in June the business said it was “severely impacted” by the cost-of-living crisis.
While last month, it experienced “a marked decline in traffic both online and in-store”, which resulted in sales for the four months to 30 November to drop 5.7% to £24.9m.
Quiz noted that the “disappointing level” of sales during November meant the cash headroom available to the business is less than previously anticipated. It currently has £1.2m in total liquidity headroom.
As a result, it cautioned that subject to the trading performance during the important pre-and-post-Christmas period, the group’s existing bank facilities could be fully utilised in the first quarter of 2025.
At the time, Quiz said: ”Given the decline in the revenues during the key trading month of November and the requirement to improve the liquidity of the business the board is reviewing the group’s financing and strategic options and has engaged advisors to consider appropriate options. A further update to shareholders will be provided as and when appropriate.”
Back in October, the retailer’s chief financial officer Gerry Sweeney announced he was set to leave the business after more than eight years.
His departure comes amid a turbulent time for Quiz as it looks to reverse its falling sales and profits, though he will remain with the group until 31 March next year to support a smooth transition to his successor.
In the year to 31 March 2024, the business plunged to a near £7m pre-tax loss – down from the £2.3m profit it recorded in 2023.
Click here to sign up to Retail Gazette‘s free daily email newsletter
