OUT OF FASHION
Major high street fashion chain calls in administrators and warns 23 stores to close with fears 200 could lose jobs
The transaction is expected to be structured as a pre-pack administration
A MAJOR high street fashion chain has called in administrators with hundreds of workers fearing they will lose their jobs.
Struggling retailer Quiz Clothing called in administrators just days after its shares were removed from the London Stock Exchange.
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Quiz, which is chaired by the former JD Sports chief Peter Cowgill, has appointed the insolvency practitioner Teneo as administrator to Zandra Retail.
The company warned the move is likely to see the closure of at least 23 of its shops.
The move is expected to involve a pre-pack administration deal, allowing the chain's founders to regain control of a slimmed-down version of the business.
A "pre-pack administration" is an insolvency process for a business to sell its assets before appointing administrators - it's a way of selling a business to a third-party buyer.
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The remaining assets will be acquired by Orion Retail, a subsidiary of the company controlled by the founding Ramzan family.
Orion will hold the right to trade from 42 outlets previously occupied by Zandra.
This will preserve the majority of the Group’s retail employees, said a Quiz spokeswoman.
Quiz currently employs approximately 1,500 people across its 60 standalone stores and numerous concessions.
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However, up to 200 employees could be let go, reports
Sheraz Ramzan, CEO of QUIZ said: “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.”
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Quiz’s online business, concessions and international operations are operated by other Group subsidiaries and are unaffected by this announcement.
The retailer's troubles come amid growing financial pressure on retailers, many of which are facing a deepening challenge in 2025 as a result of looming hikes to employers' national insurance contributions.
It comes just weeks after it was reported the fashion chain, which runs around 60 branches, was set to call in administrators.
Last month, it was reported struggling Quiz was set to call in administrators Teneo after its market capitalisation dwindled to £3.6million.
Market capitalisation represents the total value of a publicly traded company's outstanding shares of stock - the lower it is the less markets value a business or company.
The move was expected to involve a "pre-pack administration" deal - an insolvency process for a business to sell its assets before appointing administrators.
And Quiz Clothing shuttered its branch in the Queensgate Shopping Centre, Peterborough, yesterday.
Shoppers were left distraught after finding out the Peterborough store will close for good.
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Posting on Facebook, one said: "There's nothing in Peterborough Shopping Centre now...might as well pull it down."
Another commented: "Yet another nail in the coffin for Queensgate."
What does going into administration mean?
WHEN a company enters into administration, all control is passed to an appointed administrator.
The administrator has to leverage the company's assets and business to repay creditors any outstanding debts.
Once a company enters administration, a "moratorium" is put in place which means no legal action can be taken against it.
Administrators write to your creditors and Companies House to say they've been appointed.
They try to stop the company from being liquidated (closing down), and if it can't it pays as much of a company's debts from its remaining assets.
The administrator has eight weeks to write a statement explaining what they plan to do to move the business forward.
This must be sent to creditors, employees and Companies House and invite them to approve or amend the plans at a meeting.
A Notice of Intention is used to inform concerning parties that a company intends to enter administration.
It is a physical document which is submitted to court, usually by directors aiming to prevent a company from being liquidated.
Like with a standard administration process, a Notice of Intention stops creditors from taking out any legal action over a company while they try and rectify the business.
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