Quiz is reportedly preparing to close up to a third of its stores in a bid to slash costs and stabilise its struggling business.
The move, led by the founding Ramzan family, could result in hundreds of job losses across the fashion retailer’s store network, which currently consists of around 60 locations and employs approximately 1,500 people.
Quiz, which is set to delist from the London Stock Exchange’s AIM market and return to private ownership following a shareholder vote earlier this month, has enlisted restructuring experts at Teneo to explore its options.
Potential measures including a pre-pack administration or company voluntary arrangement (CVA) to facilitate the closures.
“Nothing is being ruled out,” a source close to the situation told the Telegraph, with a decision expected in the coming weeks.
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The store closures are part of a wider effort by the family, including CEO Sheraz Ramzan, to rescue the business as it faces mounting financial pressures.
Sheraz, who took over as chief executive in March 2023, is reportedly focused on cutting costs by offloading the chain’s worst-performing stores.
In the run-up to Christmas, Quiz revealed it was on the verge of running out of cash, with liquidity of just £2.3m, including £400,000 in cash reserves and £1.9m in undrawn banking facilities.
Last summer, the company secured a £1m emergency loan from Sheraz’s father, Tarak, who founded Quiz in 1993 with a single store in Glasgow. However, with HSBC reportedly reluctant to continue funding the business, Quiz is now urgently seeking alternative financing, likely on tougher terms.
Quiz recorded losses of nearly £7m last year, compared to a £2.3m profit the previous year. Chair Peter Cowgill, former JD Sports boss, has been tasked with guiding the retailer through its turnaround.
A formal announcement on the company’s future is anticipated in the coming weeks.
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