Quiz PLC (AIM:QUIZ), the fashion group, said it was in talks with founder Tark Ramzan over a £1 million loan facility after posting heavy losses in its latest half-year.
Liquidity headroom was £2.3 million on 28 August, said the AIM-listed group, but sales had fallen by a further 11% to £27.3 million in the second half of the year so far it added.
Revenues in the half year to June also dropped by 11%, to £82 million, with a £9 million swing into a loss of £6.7 million (£2.3 million profit) in the half year to end March.
Second-half trading will remain challenging, said the clothing group, which in March appointed a new chief executive, Sheraz Ramzan, to instigate a turnaround plan.
Initiatives being introduced include a restructuring of the merchandising and buying function, a more inspirational image and an expansion of the distribution channels.
Ramzan commented: “Whilst these results are disappointing - in part driven by the challenging macroeconomic conditions impacting many retailers - we have a clear plan to improve performance by leveraging our key strengths as an omnichannel retailer with a distinctive brand.”
Shares fell 19% or 0.97p to 4.1p.