A popular UK fashion chain is desperately trying to secure a rescue package following “disappointing” Christmas trade, according to reports. Quiz, a fast fashion brand with over 40 stores and 1,000 staff across the UK, was forced to shut 23 stores last year to keep its head above water amid a competitive market and rising costs. Its founders, the Glasgow-based Ramzan family, are reportedly considering bringing in advisors to consult on a range of options to ensure the brand remains solvent, including a new financing structure and further branch closures.
Sources close to the company told The Sun that multiple turnaround funds have already been approached by the Ramzans in their bid to secure new capital. It could see Quiz, founded by Tarak Ramzan in Scotland in 1993, become the latest chain to vanish from UK high streets, following downsizing efforts by WH Smith, Claire’s Accessories and others over the last 12 months.
“The shareholders are assessing options available to the business from both internal and external sources,” a spokesperson for Quiz said.
“The business has experienced volatile trading in the last 12 months. While sales were stronger than anticipated in the summer, they were disappointing during the critical Christmas period.
“Changing consumer habits, government budget disruption around peak Black Friday trade, cost pressures from business rates and increases in the national minimum wage and national insurance have proved challenging as widely reported across the retail sector.”
The past few months have seen a spate of business and branch closures as firms prepare for the removal of a Covid-era 40% discount to business rates for hospitality, leisure and retail businesses in April, as well as new property evaluations.
Among the other UK companies struggling to remain afloat are Russell and Bromley, which could see 32 of its 35 shops close following a deal with Next, and LK Bennett, which fell into administration earlier this month.
Shadow chancellor Sir Mel Stride has accused the Government of “costing Britain jobs” through its “tax-and-spend agenda”.
Chancellor Rachel Reeves insists that UK firms are feeling “optimistic” despite the mounting pressures, however.
Speaking at the World Economic Forum in Davos, Switzerland, she told Sky News: “Businesses here, this week are feeling positive. They’re feeling optimistic about the year ahead. I am too, because we have the right plan, for our economy, for our country to bring that growth and prosperity in all parts of the country that we need.”