Quiz to put store division into administration

Fast fashion retailer Quiz said on Wednesday that it is placing the subsidiary that owns its 82 standalone stores into administration.

Quiz, whose standalone store estate has been loss-making in the last year, pointed to increasing pressures, partly due to the closure of all UK and Irish stores in March but also due to an accelerating shift in consumer behaviour towards online shopping.

Chief executive Tarak Ramzan said: "Whilst we have taken pro-active actions over the past 18 months to drive footfall to our stores and renegotiate leases to improve performance, the significant economic uncertainty we now face as consumers and businesses emerge from the Covid-19 pandemic has meant that, in order to ensure a sustainable future for the group, we have taken this decision to place the subsidiary which operates our stores into administration.

"We continue to believe that stores, with appropriate property costs and flexible lease terms, can continue to be a relevant pillar in our omni-channel model and we will be seeking to re-open Quiz stores where we believe it is prudent and economic to do so."

The company’s standalone stores in the UK and the Republic of Ireland are operated through its wholly owned-subsidiary, Kast, while Kast Spain operates its three stores in Spain.

Quiz said Kast’s board had decided to seek the appointment of joint administrators. The group will then buy back from Kast (acting through its administrators) some of its stock and certain assets for £1.3m in cash.

Quiz said the proposed restructuring will enable it to operate an "economically viable store portfolio alongside its online, UK concession and international channels which are unaffected by today's announcement".

At 0810 BST, the shares were up 29.5% at 8.74p.