Home Money Quiz asks founder for £1m loan as struggling fashion retailer posts huge losses

Quiz asks founder for £1m loan as struggling fashion retailer posts huge losses

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Fall: Quiz recorded an 11% drop in sales to £27.3m in the second half of the year

Fall: Quiz recorded an 11% drop in sales to £27.3m in the second half of the year

Fashion group Quiz is in talks with its founder Tarak Ramzan over a £1m loan after posting huge losses.

The brand has a liquidity buffer of just £2.3m (£400,000 in cash and £1.9m in undrawn bank lines), while Ramzan is understood to have a net worth of around £160m.

Quiz posted an 11 per cent drop in sales to £27.3m in the second half of the year, resulting in a loss of £6.7m, compared with a profit of £2.3m a year earlier.

The company says a recovery could come within the next six months. In March, it appointed CEO Sheraz Ramzan – Tarak’s son – to drive a turnaround.

Sheraz has implemented a restructuring of marketing and purchasing, a more inspirational image and expanded distribution.

Sheraz Ramzan said: “While these results are disappointing, we have a clear plan to improve performance but recovery will take time.” The shares fell 8.7 per cent, or 0.44 pence, to 4.63 pence.

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