By Ian Walker
Quiz shares fell to their lowest ever level after the company said late Friday that it was seeking shareholder approval to cancel its trading on London's junior AIM.
Shares were down 0.87 pence, or 38%, at 1.40 pence in early European trading on Monday. They are currently down 77% over the year to date.
The fashion brand attributed its decision to the cost and regulatory burden of continuing its listing, adding that re-registering as a private company will enable it to save time and money, and extend its cash runway.
Quiz--which said earlier this month that it might need to secure extra funding--also said the current macroeconomic environment, as well as the extra costs on employers announced in October's budget, have lead to a difficult business environment hurting both store and online sales.
The company had net borrowings of 2.8 million pounds ($3.5 million) and total liquidity headroom of 1.2 million pounds as of Dec. 5. It said on Dec. 6 that without any material improvement during the important pre- and post-Christmas business period, then the company would need extra funding in the first quarter of next year.
The company also said it expected an extra 1.7 million pounds in annual costs from April due to the U.K. government's proposed changes to the minimum wage and increase in national insurance payments.
Quiz said Friday that its majority shareholder Tarak Ramzan had agreed to provide it with a 1.0 million-pound loan, conditional upon approval from the company's main lender. Ramzan owns 20.38% of the company's issued share capital.
If the proposal to cancel the company's listing is approved by shareholders at a general meeting called for Jan. 8, then it expects to delist from the London Stock Exchange on Jan. 23.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
December 23, 2024 03:53 ET (08:53 GMT)
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