Fast fashion retailer Quiz is once again seeking emergency financing to secure its future after experiencing disappointing Christmas sales.
The Glasgow-based company’s founders have blamed rising costs and competition from Chinese online giants.
Quiz, which operates more than 40 stores and employs about 1,000 staff, announced in October it would be opening up to 10 stores in response to a successful turnaround of the business. It is not known if the latest warning will affect those plans.
Last month it launched what it terms an “aspirational store concept” at Braehead Glasgow, a design blueprint to showcase the extended product offering.
Now it has emerged that it is again looking to bring in specialist advisers to explore its options. Sources close to the company revealed that several turnaround funds have approached Quiz with offers of fresh capital.
A spokesman for the Ramzan family, who own the business, confirmed the challenging trading conditions, stating: “The business has experienced volatile trading in the last twelve months.
“While sales were stronger than anticipated in the summer, they were disappointing during the critical Christmas period.”
Quiz joins a list of retailers including Original Factory Store, Claire’s Accessories, and Russell & Bromley which have run into difficulties.
Founded by entrepreneur Tarak Ramzan in 1993 as a single shop, Quiz joined the London Stock Exchange in 2017, delivering a £92 million windfall to nine Ramzan family members. Investment giants Schroders and BlackRock participated in the £200m listing.
However, the company issued a number of profit warnings and after its share price plummeted it opted to delist.
Last year, the Ramzan family bought back the business through a pre-pack administration deal after closing 23 stores.
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