Quiz calls in administrators, 200 jobs lost
Quiz has entered administration, resulting in the closure of 23 stores and the loss of approximately 200 jobs.
Quiz has entered administration, resulting in the closure of 23 stores and the loss of approximately 200 jobs.
The embattled fashion retailer, which delisted from the London stock exchange earlier this year, appointed Teneo as administrator after ongoing financial struggles.
A pre-pack administration deal is set to see the remaining assets acquired by Orion Retail, a subsidiary controlled by the founding Ramzan family.
Despite the store closures and redundancies, a significant portion of the workforce is expected to be saved as part of the restructuring, with 42 stores to continue operating under new ownership, Sky News reported.
Quiz had been facing mounting financial pressure, with deepening losses and poor trading performance. for the six months leading to September 2024, the retailer reported a pre-tax loss of £4.7m, up from £1.5m the previous year.
The company had warned it would run out of cash in early 2025 unless swift measures were taken.
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Quiz CEO Sheraz Ramzan said: “We are deeply sorry to those affected by the store closures, including our retail colleagues. However, this decision will put the business in a more sustainable footing for the future and protect several hundred jobs as a result.”
The company’s ongoing financial struggles reflect the broader challenges faced by the retail sector, as businesses cope with rising costs and changes in consumer behaviour. With many retailers grappling with similar pressures, Quiz is the latest in a line of companies to resort to drastic measures, including store closures and job cuts, in order to survive.
HSBC, the retailer’s main lender, had reportedly become hesitant to continue supporting the retailer, pushing the company to explore alternative financing options. despite the loss of stores, the retailer’s online and international operations are not impacted by the administration process.
This move follows a period of uncertainty for the business, which had been on the verge of insolvency earlier this year, as it explored options such as a CVA or pre-pack administration to restructure its operations.
Join administratir Gavin Maher added: “although the sale has resulted in the transfer of a number of jobs, it has been necessary to make redundancies. we appreciate that this is a difficult and uncertain time for all involved and are communicating appropriately with all employees, customers, and stakeholders.”
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