- Angela Gonzalez-Rodriguez |
New York – The Scotland-based fashion brand QUIZ reported Wednesday a substantial drop in sales for the five-month period ending August 31. During that time, QUIZ registered 12.8 million pounds in sales, a 77 percent decline on the 55.2 million pounds revenues generated from 1 April to 31 August 2019.
In a trading statement issued on September 9, the e-tailer explained how it was working to offset the decline: “During the period, the group has extended its casual ranges to respond to the additional demand for this product. This is in response to the decline in demand for occasion wear further to the ongoing restrictions on social events.”
From June’s administration to September’s 77 percent dip in sales: Quiz’s decline accelerates
In August, the Scottish fashion brand announced that HSBC had agreed to an increase in the bank’s total facilities available to the retailer from 1.75 million pounds to 3.5 million pounds. That comprises an overdraft facility of 2 million pounds and a working capital facility of 1.5 million pounds, highlights ‘The Scotsman’. In addition to those banking facilities, the group noted that it had net cash of 5.7 million pounds.
In June, Quiz placed the division that runs its 82 standalone stores into administration under a restructuring that will lead to the loss of circa 100 jobs. Back then, Blair Nimmo, joint administrator and head of restructuring for KPMG UK, said that “A combination of a highly challenging environment for bricks-and-mortar retailers during recent years and the Covid-19 lockdown have proven impossible for [Quiz subsidiary] KRL to overcome.”
Chief executive Tarak Ramzan said at the time: “It is with deep sadness and regret for some of our colleagues and partners that we had to take this decision to restructure the group’s operations. Physical retail in the UK was facing a major structural challenge prior to the outbreak of Covid-19 with the economics of operating stores on traditional leases becoming increasingly difficult. 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.”
Image sourced from Quiz official website