High street fashion chain 'on brink' of administration with 60 stores at risk
A high street fashion chain is "on the brink" of administration putting the future of its 60 stores in doubt. Quiz is set to call in administrators just days after its shares were removed from the London Stock Exchange, it has been reported.
Quiz currently employs approximately 1,500 people across its 60 standalone stores and numerous concessions. The company which is known for its partywear has struggled in recent years, and is expected to appoint Teneo as early as next week Sky News reports.
The retailer warned at the start of December that a "significant reduction in revenues" could lead it to run out of cash in the new year. In an update last week, the retailer signalled an impending cash crisis in the near term if it fails to secure additional financial backing soon.
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Quiz experienced "disappointing" sales over the Christmas trading period, and said that cash reserves are "less than previously anticipated". The brand attributes this shortfall, in part, to the "impact of inflationary pressures on consumer confidence and spending".
Chairman Peter Cowgill emphasised the necessity to "substantially reduce" costs, fuelling speculations that store closures might be on the horizon. According to reports by The Telegraph newspaper earlier in the week, Quiz could be contemplating shutting down as much as a third of its premises to cut back on spending.
The business is reportedly seeking guidance from restructuring experts at Teneo to consider various routes including pre-pack administration or a company voluntary arrangement (CVA) setup that could enable such cost-saving measures through store closures.
The company, which operates 62 outlets and 47 concessions throughout the UK, officially withdrew from London’s AIM market on Thursday morning. Just before the festive season commenced, the company expressed intentions to leave the stock market as part of a strategy to reduce expenses. This move was subsequently backed by shareholders earlier in January.