Glasgow-based clothes firm Quiz is reportedly preparing to close a whopping one third of their shops, as the major high-street chain is faced with falling profits.
The clothing retailer has 17 shops across Scotland – and around 60 UK-wide. It is unknown how many jobs may be at risk.
However, due to a drastic drop in profits and a ‘marked decline’ in demand in stores and online, the retailer could see that number drastically reduce to try to keep the business afloat.
Attempts to save the firm has seen company chair Peter Cowgill seek out restructuring experts. The company’s Chief Executive, Sheraz Ramzan – whose family founded Quiz – is reportedly scrutinizing stores with the worst performance for the axe.
It has been claimed around a third of the stores will be closed, if the cost cutting measures go ahead. The Telegraph reports a pre-pack administration and a company voluntary arrangement have both been mentioned in discussions about the business‘ future.
A source told the paper: “Nothing is being ruled out.”
It is currently unknown which stores will be shut, if the closures go ahead. Alongside the 17 stores in Scotland, they also have three concession stands inside other stores.
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It has not been confirmed whether the concession stands will be affected in the potential wave of closures.
The struggling-firm was restructured in 2020. However, the company plunged in value since the start of December, shortly before delisting from the stock market to save costs its value had shrank to just £3.6 million.
Execs have already taken out a £1million loan from its largest shareholder, Sheraz’s father, Tarak, in a bid to save the chain last summer. The firm revealed they made nearly a £7million loss last year, but only took home £2.3million in profit the previous year.
It is also understood HSBC are cautious about giving anymore cash to the company. Quiz has been approached for comment.
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