Quiz puts loss-making stores division into administration
Glasgow-based fashion company Quiz has announced that it is placing the division that runs its 82 standalone stores into administration.
The move is part of a restructure to offload the loss-making stores and cut the chain’s rent bill.
Quiz said that 822 of the firm’s 915 staff affected by the decision will remain with the group but that 93 jobs are at risk.
The fashion retailer said that it will look to buy back the stock and some of the assets from the Kast division placed in administration for £1.3 million so it can try to renegotiate better rents with landlords on some of the stores with a view to keeping them open, STV News reports.
Quiz did not say how many stores it would be looking to retain as part of the deal.
A small number of jobs are expected to be cut across its head office in Glasgow and distribution centre in Bellshill near Glasgow, with others at risk depending on negotiations with landlords.
Tarak Ramzan, chief executive of Quiz, said: “It is with deep sadness and regret for some of our colleagues and partners that we had to take this decision to restructure the group’s operations.”
He added: “Whilst we have taken pro-active actions over the past 18 months to drive footfall to our stores and renegotiate leases to improve performance, the significant economic uncertainty we now face as consumers and businesses emerge from the COVID-19 pandemic has meant that, in order to ensure a sustainable future for the group, we have taken this decision to place the subsidiary which operates our stores into administration.
Scottish Financial News reported in December last year that Quiz posted a six-month deficit after it accepted a £7m impairment on the loss-making stores.