Quiz officially delists, what now?

British fashion retailer Quiz has officially delisted from the London Stock Exchange’s AIM sub-market, leaving it open to move forward with its next step: re-registering as a private company.

A total of 98.6 percent of shareholders voted in favour of the proposals during a general meeting held earlier this month, allowing for Quiz to request the cancellation of its ordinary shares at 0.003 pounds each.

Quiz first began listing on AIM in July 2017, with a market capitalisation of 200 million pounds at the time, reflecting 161 pence per placing share. As such, the company had said it was anticipating a raise of 102.7 million pounds in gross proceeds, a portion of which was to be used to accelerate growth.

The listing came during a period of strength for Quiz, which had reported a 21 percent increase in group revenues between FY15 to FY17, as online channels in particular were driving growth. The company was therefore eyeing further investments into its supply chain and retail network, with plans to internationally scale its business model into countries like the US, Australia and Spain.

Quiz swings into red during pandemic and struggles to recover

All remained relatively stable until the pandemic hit, with the first half of 2020 seeing a drop in revenue of 73 percent and Quiz swinging into the red. Akin to other UK high street retailers–note the disappearance of Ted Baker, Wilko and The Body Shop from the shopping streets–Quiz has been unable to significantly recover in the face of continued macroeconomic challenges and inflationary pressures, largely as a result of the cost-of-living crisis in the region.

While for FY22, the company said it was anticipating a return to profitability, a feat it managed to achieve, by mid-2023 trouble began brewing again as weakened consumer demand began to have an impact on growth. By the end of the year, Quiz had initiated a strategic review after falling into a loss and posting declines across EBITDA and turnover.

What followed into 2024 was the departure and reshuffling of Quiz executives, including its CEO and founder, Tarak Ramzan, who was ultimately replaced by Sheraz Ramzan and Peter Cowgill, a duo that had then been tasked with continuing the recalibration of the company. Losses kept widening throughout the year, until December 2024, when reports suggested that Quiz had finally called in advisors to “consider appropriate options”.

Store closures under lean board structure on horizon

A delisting was ultimately suggested, with Quiz stating that operating on AIM came with “considerable cost, management time and the legal and regulatory burden”. Now, on the verge of becoming a private company, a process that is expected to be complete 27 January, Quiz is eyeing what it considers to be a “more appropriate” business model, complete with a “lean board structure” to allow for “greater flexibility”.

Elsewhere, media reports have suggested that Quiz is also considering closing up to a third of its store estate in an added effort to cut costs, while its reported advisors at Teneo are said to be mulling further options such as a pre-pack administration or company voluntary arrangement (CVA). Sources for The Telegraph, which initially reported on this speculation, said “nothing is being ruled out”.