High street fashion chain could close ‘a third’ of UK stores in major shake-up

The high street retailer – which currently has 60 outlets across the country and employs 1,500 workers – has put forward the plan as it tries to save the brand from administration

Popular fashion chain Quiz is reportedly planning to close up to a third of its UK stores as part of a plan to improve its finances.

The high street retailer – which currently has 60 outlets across the country and employs 1,500 workers – has put forward the plan as it tries to save the brand from administration. Quiz is led by the Ramzan family, which founded the company back in 1993 and has run it ever since. The current CEO is Sheraz Ramzan, who took over the business in March 2023. Business chair Peter Cowgill – former JD Sports boss – has also been tasked with guiding the retailer through its turnaround.

According to a report from the Telegraph, Ramzan is focused on cutting costs by offloading the chain’s worst-performing stores. Quiz is also set to delist from the London Stock Exchange’s AIM market and return to private ownership following a shareholder vote earlier this month. It has also enlisted restructuring experts at Teneo to help explore its options.

Potential measures include a pre-pack administration or company voluntary arrangement (CVA). A pre-pack administration is a legal process that allows a struggling company to sell its assets before appointing an administrator and a CVA allows a company’s debts to be paid back over an agreed period of time.

A source close to the situation told the publication that “nothing is being ruled out” and that a decision on the retailer’s next steps would likely be announced in the coming few weeks. It was revealed that the company was on the verge of running out of cash in the lead-up to Christmas after a major slump in sales both in-store and online.

In the summer, Quiz only had liquidity of around £ 2.3million, which means it only had direct access to this amount of cash, which included £400,000 in cash reserves and £ 1.9million in undrawn banking facilities. Reportedly this was from HSBC. At the time, the company secured a £1million emergency loan from Sheraz’s father, Tarak. However, HSBC was reportedly reluctant to continue funding the business, and now Quiz is urgently seeking alternative financing, likely on tougher terms. Quiz recorded losses of nearly £7million last year, compared to a £2.3million profit the previous year.