Retailer Explores Options with Teneo, Seeks Alternative Financing

  • Quiz considering closing up to a third of its 60 stores to cut costs
  • Restructuring professionals appointed from Teneo to explore options
  • Group’s liquidity down to £2.3m, including £400k cash reserves and £1.9m in undrawn banking facilities
  • HSBC reluctant to continue funding the business
  • Quiz founder secured a £1m emergency loan last summer

Quiz is reportedly considering closing up to a third of its 60-location portfolio as a way to cut costs and stabilize the business. The retailer appointed restructuring professionals from Teneo at the start of the year to explore options, which could include a pre-pack administration or a CVA to facilitate store closures. Quiz’s liquidity has dwindled down to £2.3m, including £400k in cash reserves and £1.9m in undrawn banking facilities. HSBC is reportedly reluctant to continue funding the business, prompting the group to urgently seek alternative financing. Quiz founder Tarak Ramzan secured a £1m emergency loan last summer.

Factuality Level: 8
Factuality Justification: The article provides relevant information about Quiz’s financial situation and its plans to close stores and delist from the London Stock Exchange’s AIM market. It also mentions the appointment of a new chairperson for the company. However, it lacks some specific details such as the exact number of stores that may be closed and the source of information is not mentioned.
Noise Level: 3
Noise Justification: The article provides relevant information about Quiz’s financial struggles and its plans to cut costs by closing stores and seeking alternative financing. However, it lacks in-depth analysis or actionable insights for readers.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses Quiz’s financial struggles and its plans to cut costs by closing stores, as well as its delisting from the London Stock Exchange’s AIM market. It also mentions the retailer’s liquidity issues and search for alternative financing. These topics are related to financial topics and the company’s internal financial situation, but do not directly impact financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event in the text and it does not mention any event that happened in the last 48 hours.

Reported publicly: www.retailsector.co.uk