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Quiz on verge of administration

Quiz on verge of administration

Quiz Clothing is on the brink of administration as it faces mounting financial pressures.

The embattled fashion retailer, which recently delisted from the London Stock Exchange, is understood to appoint Teneo as its administrator by the end of next week, Sky News reported.

Quiz is exploring options such as pre-pack administration or a CVA to facilitate store closures, though one source close to the situation noted that “nothing is being ruled out”.

The potential pre-pack insolvency move aims to restructure the business and allow the founding Ramzan family to regain control of a slimmed-down operation.

The restructuring is likely to include significant reductions in both its store network and workforce, with Quiz currently operating around 60 standalone stores and employing approximately 1,500 people.

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Last week it emerged that Quiz is preparing to close up to a third of its stores as part of efforts to slash costs and stabilise its business.

It warned at the end of last month that it would run out of cash in early 2025 following “disappointing level of revenues” in the run up to Christmas.

The retailer reported its pre-tax losses had deepened from £1.5m to £4.7m for the six months to 30 September.

HSBC, Quiz’s main lender, is thought to be hesitant in continuing support for the fashion retailer, leaving the business to urgently seek alternative financing options.

Quiz’s ongoing financial woes reflect broader challenges across the retail sector, as many face increased pressure from rising costs and shifting consumer spending patterns.

The looming administration comes amid a wave of redundancies and cost-cutting measures across the retail sector.

Adidas, Schuh, River Island, and others have already announced job cuts, with many retailers planning to reduce headcount or increase prices to offset higher tax bills and operational expenses.

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