Kast Retail Limited, the division of Quiz which runs its 82 standalone stores in the UK and Ireland, is being put into administration as part of a restructure to offload the loss-making outlets and cut its rent bill.
Whilst 822 of the 915 staff affected will remain with the group, 93 are at risk. A small number of job losses are expected in its Glasgow head office and distribution centre. The actual amount of job losses will become clear following the agreed negotiations with landlords.
As part of the deal, Quiz will look to buy back the stock and some assets from appointed administrators, KPMG, for £1.3 million, so it can try to renegotiate better rental terms with landlords on some stores, with a view to keep them open. It is unclear as to how many stores it would be looking to retain as part of the deal.
Its concessions and international operations are not affected.
CEO of Quiz, Tarak Ramzan, said: ‘’It is with deep sadness for some of our colleagues and partners that we had to take this decision to restructure the group’s operations.’’
He explained that despite being proactive and taking action to encourage footfall to stores and renegotiate leases, the economic uncertainty being faced by both consumers and businesses currently due to the unprecedented Covid-19 pandemic has left this decision to be taken in order to ensure a sustainable future.
‘’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.’’