Quiz is set to shut down a third of its UK stores to improve finances and avoid administration. Check out which locations are at risk.
The brand has about 60 standalone shops and employs around 1,500 people. They’ve faced some serious challenges, especially after the pandemic hit. Remember when they had to shut down during lockdowns? That really hurt their sales.
In fact, they saw a massive 77% drop in sales back in 2020. Only 60 out of 75 stores reopened after the pandemic. The founders, the Ramzan family, are now looking to revamp the business.
Sheraz Ramzan, the CEO since March 2023, is leading the charge. They’re planning to cut costs by closing the least profitable stores. They also want to go private again after a recent shareholder vote.
To help with this, they’ve brought in restructuring experts. They’re considering options like pre-pack administration or a company voluntary arrangement.
The brand has been struggling with cash flow, especially before Christmas. Last summer, they had about £2.3 million in liquidity. They even had to secure a £1 million emergency loan from the CEO’s dad.
Despite the challenges, HSBC has been supporting them, but they’re looking for other financing options. Last year, they reported losses of nearly £7 million, a big drop from the previous year’s profit.
Now, let’s talk about the stores at risk. Locations like Athlone, Brighton, and Birmingham Merryhill are on the chopping block. It’s a tough time for Quiz, and many employees are understandably worried about their jobs.
