There are growing concerns that Quiz, the beloved fashion retailer known for its party dresses, might shut down many UK stores. Reports suggest the company is on the brink of administration, leaving the future of approximately 1,500 workers and its 60 stores hanging in the balance.
The brand also operates numerous concessions and franchises, and just days ago its shares were delisted from the London stock market, Sky News reports. Sky says the firm is lining up Teneo as an administrator.
They could be in place before the end of next week, Sky claim. The broadcaster says the business could be restructured.
That could result in far fewer stores and employees, Sky reports. Loyal customers have taken to social media to share their dismay, with some labelling the potential closure as “heartbreaking”.
The High Street is already facing a myriad of financial pressures. The Glasgow-based chain’s apparent troubles come hot on the heels of WH Smith’s revelation of plans to offload its High Street segment, impacting around 5,000 employees. Sainsbury’s is also wielding the axe, with 3,000 jobs at risk due to departmental restructuring.
Quiz has been a staple in the UK’s fashion scene for over three decades, having opened its first store in Glasgow. It expanded swiftly across Scotland and established prominent outlets in key cities such as Cardiff, Liverpool, and Manchester, reports the Mirror.
The brand also boasts international concessions and branches in countries like Saudi Arabia, Pakistan, and Kuwait, according to Daily Mail reports. In 2017, the company was reportedly valued at £245 million. However, it encountered significant challenges in June 2020 amidst the COVID-19 pandemic, which led to a small number of job losses and permanent store closures.
In April, employers will face a 1.2 percentage point increase in national insurance contributions, bringing the rate to 15 per cent, while the eligibility threshold will decrease from £15,000 to £9,000 in earnings. Chancellor of the Exchequer Rachel Reeves also reduced rate relief from 75 per cent to 40 per cent, capping it at £110,000, which critics fear will significantly impact smaller firms.
The Budget, which featured a series of tax-raising measures, has sparked mixed reactions – as have plans to give workers more employment rights from day one, due to fears over the impact on business at a time of very low growth. Anthony Pender, owner of the Somers Town Coffee House in Sir Keir Starmer’s constituency, expressed his concerns, stating that the increases “penalise small businesses employing local people and that elevate and provide services for local communities.”
He continued: “We have survived a major fire, Covid, the credit crunch, the cost of living crisis and austerity. It is a resilient, successful business, and the Chancellor’s Budget has put that and a team of 30-plus at risk.”