Quiz has launched a strategic review after the business swung to pre-tax loss of £1.5m in the six months to 30 September.
The womenswear retailer, which reported a pre-tax profit of £1.8m for the period last year, cited weakened demand amid ongoing inflationary pressures for the steep drop.
Quiz warned that its full-year sales would miss market estimates due to sluggish demand and weak Black Friday revenue.
It said sales plunged 12% to £14.1m for the two months to November 30, which includes Black Friday, falling behind management expectations.
The fashion retailer said that “given the group’s recent trading performance, the board has decided to immediately initiate a thorough review of the strategic options available to the group to maximise shareholder value”.
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This process is being led by independent chairman, ex-JD Sports boss Peter Cowgill, and the business’ advisor Panmure Gordon. It expects to share its findings in the first quarter of 2024.
Quiz chief executive Tarak Ramzan said: “This has been a challenging period for many retailers, and we have not been immune to the widely publicised macro headwinds impacting consumer demand.
“Notwithstanding the ongoing pressure on consumers, we have continued to focus on taking the right decisions for our long-term future, including prioritising protecting full-price sales and carefully managing our store portfolio.
“I remain confident that Quiz remains a strong, distinctive brand known for providing glamorous looks at good value prices.
“However, given the prolonged period of challenging trading we believe it is prudent to examine a range of options to maximise shareholder value.”
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