High Street Jobs Hit Again as Quiz Clothing Collapses
The UK high street is bracing for another wave of job losses as Quiz Clothing, a well-known fashion retailer, has fallen into administration. According to sources close to the situation, the company, which until recently was listed on the London Stock Exchange, will close 23 of its stores, resulting in approximately 200 redundancies. This move is part of a broader restructuring effort to address the retailer’s financial struggles amid challenging trading conditions.
Quiz Clothing, chaired by Peter Cowgill, the former chief executive of JD Sports, has appointed Teneo, a leading insolvency practitioner, to oversee the administration of Zandra Retail Limited, the subsidiary responsible for operating its standalone stores in the UK and Ireland. The administration process is expected to be structured as a pre-pack deal, where the company’s remaining assets will be acquired by Orion Retail, a subsidiary controlled by Quiz’s founding Ramzan family. Orion Retail will retain the rights to trade from 42 of the former Zandra stores, ensuring some level of continuity for the business.
The Appointment of Administrators and the Future of Quiz’s Stores
The decision to appoint administrators comes after weeks of intensive discussions aimed at securing a rescue deal for Quiz. Despite these efforts, the company’s financial challenges proved insurmountable, leading to the closure of nearly a quarter of its standalone stores. However, it is understood that Teneo and the new owners have worked diligently to preserve as many jobs as possible. The majority of Quiz’s workforce, which earlier this year numbered around 1,500 people across 60 standalone stores and numerous concessions, will be unaffected by this announcement.
Sheraz Ramzan, CEO of Quiz Clothing, expressed his regret over the redundancies, stating, "The board took the difficult decision to appoint administrators to Zandra Retail Limited in light of the continuing challenging trading conditions impacting the Group’s performance. We are deeply sorry to those affected by the store closures, including our retail colleagues. However, this decision will put the business in a more sustainable footing for the future and protect several hundred jobs as a result."
Orion Retail Acquires Remaining Assets, Saving Hundreds of Jobs
While the closure of 23 stores will inevitably lead to significant job losses, the acquisition of Quiz’s remaining assets by Orion Retail ensures that the majority of its workforce will remain employed. Orion Retail, a subsidiary of the Ramzan family’s business empire, has agreed to take over 42 outlets previously operated by Zandra Retail, safeguarding hundreds of jobs in the process. This deal represents a lifeline for many employees who would otherwise have faced redundancy, though it is little comfort to those who have lost their positions as a result of the store closures.
The acquisition also ensures that Quiz’s brand will continue to have a presence on the high street, albeit in a reduced capacity. The company’s online business, concessions, and international operations, which are managed by other subsidiaries within the Quiz Group, remain unaffected by the administration and will continue to trade as usual.
A Challenging Time for High Street Retailers
Quiz Clothing’s collapse is the latest in a string of high-profile struggles faced by UK retailers. The high street is under immense pressure, with many businesses grappling with soaring costs, declining footfall, and weakening consumer confidence. The upcoming increase in employers’ national insurance contributions in 2025 has further exacerbated these challenges, leaving many retailers in a precarious financial position.
In recent weeks, Sky News has reported on several other retailers facing similar difficulties. WH Smith, a high street stalwart with 500 stores and 5,000 employees, is reportedly exploring the sale of its entire high street chain. Poundland’s parent company has hired advisers to assess options for the discount retailer, while family-owned kitchenware chain Lakeland has been put up for sale. Meanwhile, The Original Factory Shop is being sold to Modella Capital, highlighting the widespread financial strain impacting the retail sector.
What’s Next for Quiz Clothing?
While the immediate future of Quiz Clothing remains uncertain, the acquisition of its remaining assets by Orion Retail offers a glimmer of hope. The company’s online business and concessions continue to operate, providing a foundation for potential recovery. However, the closure of 23 stores and the loss of 200 jobs serve as a stark reminder of the challenges facing the retail industry.
Gavin Maher, Joint Administrator at Teneo, acknowledged the difficulties posed by the situation, stating, "Although the sale has resulted in the transfer of a number of jobs, it has been necessary to make redundancies. We appreciate that this is a difficult and uncertain time for all involved and are communicating appropriately with all employees, customers and stakeholders."
The Role of Pre-Pack Administrations in Retail Restructuring
The use of a pre-pack administration in Quiz’s case is a strategy increasingly employed by struggling retailers to restructure their operations quickly and efficiently. Pre-pack administrations allow companies to sell their assets to a new entity, often affiliated with the existing ownership, while avoiding the prolonged and costly process of a traditional administration. This approach enables businesses to shed underperforming assets, such as loss-making stores, while preserving the majority of their workforce and maintaining brand continuity.
However, critics argue that pre-pack administrations can lack transparency and may disadvantage creditors, as the sale of assets is agreed upon before the administration is formally announced. In Quiz’s case, while the deal with Orion Retail has saved hundreds of jobs, it is likely that creditors will face significant write-offs on their investments in the company.
As the retail sector continues to navigate these turbulent times, the use of pre-pack administrations is likely to remain a controversial yet necessary tool for businesses seeking to restructure and survive. For now, Quiz Clothing’s story serves as a reminder of the human cost of economic challenges and the resilience required to adapt to an ever-changing retail landscape.
