Another wave of job losses is imminent on the high street this week as Quiz Clothing, the embattled fashion retailer, has enlisted administrators.
Sky News has learned that the company, which was recently listed on the London Stock Exchange, will be shutting down 23 of its stores, resulting in approximately 200 employees facing redundancy.
Quiz, under the leadership of former JD Sports chief Peter Cowgill, has appointed insolvency practitioner Teneo as the administrator to Zandra Retail, the entity responsible for Quiz’s standalone stores in the UK and Ireland. This move comes after weeks of negotiations over a potential rescue deal.
The administration process is expected to take the form of a pre-pack arrangement, with the remaining assets being taken over by Orion Retail, a subsidiary of the company controlled by the Ramzan family, the founders of Quiz.
Orion will now have the rights to operate from the 42 outlets previously occupied by Zandra.
According to a rival bidder, efforts were made by Teneo and the buyers to retain as many jobs as possible, with the majority believed to have been saved.
It was reported by Sky News last month that Quiz Clothing operated around 60 standalone stores and numerous concessions, employing approximately 1,500 individuals.
It is important to note that QUIZ’s online business, concessions, and international operations, managed by other Group subsidiaries, remain unaffected by this development.
Sheraz Ramzan, Quiz’s CEO, expressed in a statement to Sky News: «The board made the tough decision to appoint administrators to Zandra Retail Limited due to the ongoing challenging trading conditions impacting the Group’s performance.
«We deeply regret the impact of the store closures on those affected, including our retail colleagues.
«Nevertheless, this decision will position the business on a more sustainable path for the future and safeguard several hundred jobs as a result.»
The main lender for Quiz, HSBC, had recently brought in restructuring experts from Interpath for advice.
Quiz’s difficulties come amidst mounting financial pressures on retailers, many of which are bracing for increased challenges in 2025 due to anticipated rises in employers’ national insurance contributions.
In recent weeks, Sky News has uncovered discussions about WH Smith potentially selling its entire high street chain of 500 stores and approximately 5,000 employees; Poundland’s parent company seeking advice on options for the popular discount chain; Lakeland, a family-owned kitchenware retailer, being put up for sale; and The Original Factory Shop being acquired by Modella Capital.
Gavin Maher, Joint Administrator, stated: «While the sale has led to the transfer of some jobs, unfortunately, redundancies have been necessary.
«We understand that this is a challenging and uncertain time for all parties involved, and we are communicating effectively with all employees, customers, and stakeholders.»