Scottish fast fashion brand Quiz agrees banking deal
● HSBC banking facilities upped to £3.5m from £1.75m ● Comes as group continues with major restructure
Quiz, the Glasgow “fast fashion” retailer, has doubled up after agreeing an extension of its banking facilities with HSBC.
The group, which has been attempting to turn the business around amid weak sales, confirmed that the total bank facilities available to it has increased from £1.75 million to £3.5m.
That comprises an overdraft of £2m and a working capital facility of £1.5m.
In addition to those, the group noted that it had net cash of £5.7m.
In June, Quiz placed the division that runs its 82 standalone stores in administration under a restructuring that will lead to the loss of more than 90 jobs.
The group, which had been undertaking an overhaul of the business before coronavirus struck, said it was offloading loss-making outlets and cutting its rent bill.
Quiz said 822 of the 915 staff affected by its restructuring would 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.
The 11 stores closing include Quiz’s Kirkcaldy branch.
Blair Nimmo, joint administrator and head of restructuring for KPMG UK, said at the time: “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.
“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.”
Last month, Quiz said it believed that one of its Leicester suppliers had used a subcontractor at the centre of allegations over breaches to the national living wage.
The brand said it was “extremely concerned” by reports that its clothes were being made in a factory where prospective staff were being paid as little as £3 an hour.
The company said it was looking into the issue, a week after similar allegations had wiped more than a third off the share price of online fashion business Boohoo.