Quiz eyes store closures as costs mount

Quiz is reportedly considering closing up to a third of its 60-location portfolio as a way to cut costs and stabilise the business, according to The Telegraph. 

It comes as Quiz is also due to delist from the London Stock Exchange’s AIM market and return to private ownership, following a shareholder vote earlier this month. 

It is understood that the retailer appointed restructuring professionals from Teneo to “explore its options” at the start of the new year, which could include a pre-pack administration or a CVA to facilitate Quiz’s store closures. 

Sheraz Ramzan, who took over as CEO in March 2023, is focused on cutting costs by off-loading Quiz’s worst-performing stores as the group deals with mounting financial pressures. 

Quiz disclosed that its liquidity was down to £2.3m, which included £400k in cash reserves and £1.9m in undrawn banking facilities, shortly before Christmas.

While Quiz founder Tarak Ramzan secured a £1m emergency loan last summer, HSBC is reportedly reluctant to continue funding the business. This has prompted the group to “urgently” seek alternative financing. 

For its most recent full financial year, Quiz reported a loss of almost £7m compared with a £2.3m profit the year before. The retailer’s turnaround will be led by former JD Sports boss Peter Cowgill, who has been appointed as chair.

The Telegraph learned from a source close to the situation that a decision is expected in the coming weeks, at which point Quiz will make a formal announcement. 

Quiz has declined to comment.