(Alliance News) - Quiz PLC said Tuesday is has agreed an extension of its existing banking facilities with HSBC, which had previously been due to expire on April 23, until the end of July.
The retailer said it is taking steps to preserve cash by eliminating non-essential spend, postponing capital projects, substantially reducing stock intakes.
"Given the ongoing uncertainty regarding the duration of the Covid-19 outbreak, the board is undertaking a review of various potential short- and medium-term trading scenarios and has therefore sought to extend its existing facilities while this review is undertaken," Quiz added.
Quiz confirmed it currently has an overdraft facility of GBP2.0 million and a working facility of GBP1.5 million that will remain in place until the end of July. As of Tuesday, Quiz had net cash of GBP6.0 million.
Chief Executive Tarak Ramzan said: "We are taking the actions needed to preserve cash and manage liquidity throughout this unprecedented and challenging period in order to ensure that Quiz remains well positioned to deliver its strategic plans over the longer term. We are grateful for the constructive dialogue with and ongoing support of our stakeholders, including colleagues, suppliers and partners as well as our bank, HSBC."
Shares in Quiz closed 4.7% lower in London on Tuesday at 6.72 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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Quiz (QUIZ)