Quiz reportedly seeking new funding following disappointing Christmas results

British fashion chain Quiz is believed to be seeking a "rescue financing package” after Christmas sales proved to be “disappointing”.

According to the Telegraph, the financing would contribute to “radical plans” to stabilise the business amid higher costs and heightened competition from online retail giants.

The company, which operates over 40 stores, is said to be mulling the appointment of advisors to draw up options for the business, “including new financing and possible store closures, in an effort to secure its future”.

A source for the media outlet suggested that it had already seen interested parties looking to provide new capital.

A spokesperson for the company told the Telegraph that shareholders were “assessing options available to the business from both internal and external sources”.

The statement continued: “The business has experienced volatile trading in the last 12 months. While sales were stronger than anticipated in the summer, they were disappointing during the critical Christmas period.

“Changing consumer habits, government budget disruption around peak Black Friday trade, cost pressures from business rates and increases in national minimum wage and national insurance have proved challenging as widely reported across the retail sector.”

The news reflects a pivot in what was initially seen to be a positive turnaround of the business, after it had previously brought in administrators in February last year and shuttered 23 stores amid a wider restructuring plan.

By September, Quiz said it was back to double-digit sales growth under a new operational streamlining strategy that was beginning to pay off. The company then revealed plans to reopen a number of stores across the UK, as it rolled out a new retail concept offering a “more sophisticated” experience.