GLASGOW - QUIZ Plc, the fashion brand known for its omni-channel presence, today announced its intention to voluntarily delist its ordinary shares from the AIM market and re-register as a private limited company. This move follows a strategic review and a vote by shareholders set for January 8, 2025, requiring a minimum of 75% approval.
The company's board has cited several reasons for the proposed delisting, including the high costs and management time associated with maintaining its AIM listing, which they believe are disproportionate to the benefits. The board also pointed out the challenging macroeconomic conditions, weak share price performance, and limited liquidity of the ordinary shares as factors contributing to their decision.
The current trading environment, marked by inflationary pressures and low consumer confidence, has resulted in reduced in-store and online traffic for QUIZ. The company is facing an increasingly competitive fast-fashion retail landscape, and the board believes that operating as a private company will allow more flexibility to address these challenges and implement necessary cost reductions.
Tarak Ramzan, the founder and majority shareholder, has proposed a £1.0 million loan facility to provide the company with working capital. However, this is subject to approval from the group's main lender. The company anticipates needing additional funding in the first quarter of 2025 and has garnered substantial support for the delisting from shareholders, with irrevocable commitments from directors and family members representing approximately 66.74% of the issued share capital.
The board has also outlined plans for a Matched Bargain Facility, provided by JP Jenkins, to assist shareholders in trading shares post-cancellation, if the resolutions are passed.
Non-executive directors are set to resign upon the cancellation, and the Chief Financial Officer, Gerry Sweeney, will step down on March 31, 2025, after ensuring a smooth transition to his successor.
This announcement is based on a press release statement, and further details can be found in the circular to be posted to shareholders on December 23, 2024.
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