Glasgow-based fashion chain Quiz agrees deal - but 90 jobs go

Quiz, the Glasgow-headquartered fashion retailer, has placed the division that runs its 82 standalone stores into administration under a restructuring that sees the loss of more than 90 jobs.

The group had already been undertaking an overhaul of the business. Picture: contributed.

The group, which had been undertaking an overhaul of the business before coronavirus struck, is offloading loss-making outlets and cutting its rent bill.

News of the move came as it emerged that more than 500 jobs are set to be lost after Monsoon Accessorize entered administration, as the hit from coronavirus threw its turnaround plan off course.

The restructuring sees the loss of more than 90 jobs. Picture: contributed.

Quiz said 822 of the 915 staff affected by its restructuring will transfer to a separate subsidiary, Zandra Retail, but that 93 employees have been made redundant. Trading at 11 stores has ceased permanently.

The group, which has its head office in Glasgow and a distribution centre in Bellshill, said its concessions and international operations were unaffected by the administration.

Blair Nimmo, joint administrator and head of restructuring for KPMG UK, said: “A combination of a highly challenging environment for bricks-and-mortar retailers during recent years and the Covid-19 lockdown have proven impossible for [Quiz subsidiary] KRL to overcome.”

Chief executive Tarak Ramzan said: “It is with deep sadness and regret for some of our colleagues and partners that we had to take this decision to restructure the group’s operations.

“Physical retail in the UK was facing a major structural challenge prior to the outbreak of Covid-19 with the economics of operating stores on traditional leases becoming increasingly difficult.

“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 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 11 stores closing include Quiz’s Kirkcaldy branch. Meanwhile, Monsoon Accessorize expects to make 545 staff redundant as it closes 35 stores, despite its founder Peter Simon buying the business out of administration almost immediately.

However, the deal will transfer around 450 jobs to Adena Brands, owned by Simon, which has promised to inject £15m into the business to allow the remaining stores to stay open. Simon will try to renegotiate with landlords to get a better deal on the remaining 162 store leases.

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