Quiz is facing tough times, considering closing many stores due to falling profits
Glasgow: The fashion retailer Quiz is in a bit of a pickle. They’re thinking about closing nearly a third of their stores because profits are taking a nosedive. Right now, they have 17 shops in Scotland and about 60 across the UK, but it’s not clear how many will actually close.
Sales have been pretty rough, both in-store and online, which is pushing them to make some tough decisions. To help turn things around, Peter Cowgill, the chair, has brought in some restructuring experts.
Sheraz Ramzan, the CEO and part of the founding family, is looking at which stores aren’t doing well and might be on the chopping block. Reports say they could close around a third of their locations to save costs.
They’re also chatting about options like pre-pack administration and company voluntary arrangements to figure out a way forward. A source mentioned that “nothing is being ruled out,” so it’s all up in the air.
As for which stores might close, that’s still a mystery. Besides their standalone shops, they also have three spots in other stores, but it’s unclear if those will be affected too, according to the Daily Record.
This isn’t the first time Quiz has faced challenges; they went through a restructuring back in 2020. But since December, their value has dropped significantly, especially after being delisted from the stock market, leaving them worth just £3.6 million.
Last summer, they secured a £1 million loan from their biggest shareholder, who happens to be Sheraz’s dad, to help keep things afloat. They reported a loss of nearly £7 million last year, a big drop from a profit of £2.3 million the year before.
It seems like HSBC is also hesitant to lend them more money. Quiz hasn’t commented yet, so we’ll have to wait and see what happens next.
Join Glasgow Live’s WhatsApp community here and get the latest news sent straight to your messages.
Sign up to our daily Glasgow Live newsletter here to receive news and features direct to your inbox
