// Quiz is seeking KPMG administrators to restructure its store portfolio
// It has 82 standalone stores in the UK and Republic of Ireland through its wholly owned subsidiary Kast Retail Limited
Quiz is seeking to appoint administrators to its wholly owned subsidiary in an effort to revive its store portfolio.
The fast fashion retailer has 82 standalone stores in the UK and Republic of Ireland through its wholly owned subsidiary Kast Retail Limited and has made the decision to seek administrators from KPMG.
Quiz said it is “proposing to subsequently acquire from Kast (acting through its administrators) the business and certain assets of Kast for a cash consideration of £1.3 million”.
This will take Zandra Retail Limited, another wholly owned subsidiary of Quiz, acquiring the business assets of Kast after the appointment of administrators.
As a result, 93 of the 915 current staff of the Kast subsidiary will be made redundant.
Zandra will also take up new lease agreements on both the group’s head office in Glasgow and its distribution centre in Bellshill.
Quiz said this would allow it to operate an “economically viable store portfolio alongside its online, UK concession and international channels” which will not be affected by the administration.
The retailer blamed the administration on the enforced closure of stores due to the coronavirus pandemic.
As of June 9, Quiz said it had £5.93 million of cash and additional banking facilities of £1.75 million and was still in discussions about securing a longer-term credit line.
“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,” Quiz chief executive Tarak Ramzan said.
“Physical retail in the UK was facing a major structural challenge prior to the outbreak of Covid-19 with the economics of operating stores on traditional leases becoming increasingly difficult.
“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.
“We continue to believe that stores, with appropriate property costs and flexible lease terms, can continue to be a relevant pillar in our omnichannel model and we will be seeking to reopen Quiz stores where we believe it is prudent and economic to do so.
“We believe that with an appropriately structured store estate in combination with our capital light concession model, international channel and online focus Quiz will be better positioned for all its stakeholders over the long term.”