Troubled Glasgow fashion firm Quiz plc said it anticipates that “additional funding will be required by the Group” in early 2025.

Quiz announced on December 20 it will seek shareholder approval to cancel its shares and re-register as a private limited company.

In a trading update on December 27, Quiz said: “As announced in the Group’s trading update on 6 December 2024, for the first three months of the period from 1 August to 31 October, several of the Group’s KPIs were trending positively.

“However, during the important trading month of November, QUIZ experienced a marked decline in traffic both online and in-store compared to previous months and the comparable period in the prior year. Revenues in the period from 1 August to 30 November 2024 amounted to £24.9 million, a £1.5 million reduction on the prior period.

“Since that update, while demand in December has shown signs of improvement with online revenues broadly consistent with the prior year on a like-for-like basis, sales in store continue to trend behind those achieved last year. As a result, total revenues in December continue to fall short of management’s expectations and have not compensated for the shortfall in revenues experienced in November.

“Ongoing improvements in the Group’s cost base to date will be offset by the recent proposed changes to the National Living Wage and Employer’s National Insurance arrangements, resulting in circa £1.7 million per annum of additional costs from April 2025 …

“The Group has £4.0 million of bank facilities which are scheduled to expire on 30 June 2025. There are no financial covenants applicable to these facilities which are repayable on demand.

“As at 26 December 2024, the Group had net borrowings of £3.5 million and total liquidity headroom of £0.5 million.

“Given the disappointing level of revenues in the important Christmas trading period, as announced on 6 December 2024, the cash headroom available to the business is less than previously anticipated. As a result, the Board anticipates that additional funding will be required by the Group in early 2025.”